🎙️ A new episode of my “5 Minutes Podcast” is now live: “How Calculating the Risk’s Expected Monetary Value Can Mislead Our Project Reserves.” Have you ever crunched the numbers on risk and felt super confident about your project reserves, only to get a surprise later? This episode is for you! I explain how the traditional method of calculating the Expected Monetary Value (EMV) of risks can sometimes give us a false sense of security about the need for financial reserves to protect against the unexpected. In this episode, I talk about the gaps in the EMV model, especially when you identified a few threats, most of them with a Black Swan behavior (very low probability but a dramatic impact). In these cases, the Expected Monetary Value is as relevant as calculating the average between 0 and 1 million and getting a result of 500k. Understanding this concept is extremely helpful when handling risks in your day-to-day project activities. If you are preparing yourself for PMI’s PMP exam, I bet this would be a good question to ask candidates. 😃 I hope you find it helpful. Wishing you a week ahead that’s not only fantastic but also safe and peaceful—something we all truly need in these times. 🙏 Ricardo Viana Vargas #riskmanagement #riskanalysis #financialreserves #projectmanagement #pmot #podcast https://ricardo-vargas.com/podcasts/how-the-calculation-of-the-risks-expected-monetary-value-can-mislead-our-project-reserves/