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THE FEUTEX TOOLKIT

Project Risk Expected-Cost Reserve

Combine expected costs of three identified risks and an explicit management buffer.

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02 Your result
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FormulaExpected risk cost = v.risk_a_probability/100*v.risk_a_cost+v.risk_b_probability/100*v.risk_b_cost+v.risk_c_probability/100*v.risk_c_cost ; Planning reserve = v.risk_a_probability/100*v.risk_a_cost+v.risk_b_probability/100*v.risk_b_cost+v.risk_c_probability/100*v.risk_c_cost+v.buffer
Sources and model references

Worked example

Inputs

Risk a probability
20 %
Risk a cost
10000 currency
Risk b probability
10 %
Risk b cost
20000 currency
Risk c probability
30 %
Risk c cost
5000 currency
Buffer
1000 currency

Expected results

Expected risk cost
5500 currency
Planning reserve
6500 currency

Load the example in the workspace to reproduce these results. Display rounding does not change the underlying calculation.

How to use this tool

  1. Enter your own assumptions using a consistent currency and period.
  2. Review the scenario outputs and compare alternative inputs.
  3. Check the stated model limits before using the result in an operating plan.

Try this example

{
  "risk_a_probability": 20,
  "risk_a_cost": 10000,
  "risk_b_probability": 10,
  "risk_b_cost": 20000,
  "risk_c_probability": 30,
  "risk_c_cost": 5000,
  "buffer": 1000
}

Accuracy and scope

Expected-value reserve only, not a confidence percentile. Correlations do not change the expected sum but materially affect tail losses and contingency adequacy.

Is my data uploaded?

This tool runs locally in your browser. Input and output are not sent to a processing server. Copy or download your result before leaving the page.