This PPT slide, part of the 84-slide Risk Management in a Project Portfolio Management (PPM) Context PowerPoint presentation, titled "Probability of achieving cost objectives" presents a graphical representation of the likelihood of completing a project within specified cost parameters. The x-axis likely denotes various cost values, while the y-axis illustrates the probability of achieving those costs. The curve depicted is an S-shaped probability curve, indicating that as project costs increase, the probability of achieving those costs also rises, albeit at a diminishing rate.

A notable point on the graph is marked at 0.68 on the x-axis, suggesting that at this specific cost value, there is a 68% probability of project completion within that budget. This metric is crucial for decision-making, as it provides a quantifiable measure of risk associated with cost overruns. The horizontal red line at approximately 0.75 indicates a threshold probability, which may represent a target or acceptable level of risk for stakeholders.

The accompanying text emphasizes that for any given cost on the x-axis, the corresponding y-axis value reveals the likelihood of completing the project within that budget. This insight is essential for executives and project managers who need to assess financial feasibility and manage expectations regarding project delivery.

Understanding this probability curve allows for informed discussions around budget allocation and risk management strategies. It can guide executives in making strategic decisions about resource allocation and project prioritization, ensuring that they are aware of the financial risks involved in their initiatives. Overall, this slide serves as a valuable tool for evaluating cost-related project risks and aligning them with organizational objectives.

EXPLORE MORE SLIDES FROM THIS PRESENTATION

EXPLORE MORE PRESENTATIONS ON

Risk Management Project Management Project Risk Project Cost Portfolio Management Financial Risk