PMP Practice: Communicate risk status to stakeholders

Kavya Subramaniam is managing a municipal water treatment facility upgrade for Kaito Fujimoto Partners. During risk assessment workshops, the team identifies a significant risk: potential discovery of contaminated soil during excavation, which would trigger mandatory environmental remediation. The team estimates three scenarios: best case remediation cost of $45,000 (20% probability), most likely cost of $85,000 (50% probability), and worst case cost of $140,000 (30% probability). Kavya needs to calculate the expected monetary value of this risk to determine the appropriate contingency reserve allocation. What is the EMV for this risk?