LESSON 6-5: Measuring Cost with Risk
This lesson describes:
• How Risk affects schedule and budget Baseline
• Risk impact on schedule 
• Risk impact on cost 

[MUSIC PLAYING]
1. Risk affect schedule and budget.
Risk doesn't just affect the schedule. It affects the budget, too. Risk Analysis in Primavera Cloud includes schedule-driven cost changes, allowing you to determine if the project will be on time and on budget.
For example, in this project, the Lay Foundation work has already started. If a risk occurs, such as the foundation subsides, the work takes longer to complete. While the material costs will remain the same, the labor costs will increase and impact the overall budget.

2. Risk impact on schedule.
Running Risk Analysis will not only consider schedule duration changes but also recalculate costs associated with those durations. In this example, the analysis shows, with a 30% chance of the risk occurring, a range of optimistic and pessimistic dates for the project to complete. The project is scheduled to complete on April 7th and could take as long as May 15th to complete.

3. Risk impact on cost.
The remaining cost is currently $145,000. But based on the same 30% chance the risk occurs, the costs could go as high as $196,000. The At-Completion Cost is also available to factor in actual and remaining costs.