Common Concept of CB Analysis

Prior to creating a new project, project planners conduct a cost-benefit analysis as a means of evaluating all of the potential costs and revenues that may be generated if the project is completed. The outcome of the analysis will determine whether the project is financially feasible, or if another project should be pursued.

In the context of C-BRAT™ Project:

C-BRAT also uses the same concept. It calculates how much cost is required to mitigate the existing risk. Or the total risk can mitigated at what cost. C-BRAT performs the C-B Analysis in two ways—investment-based and risk-based.

Project Contingency Money Allocation View

Investment Based :

In this method, user enters some amount that is less than total budget for project level risk mitigation. Then takes the two parameters – priority and risk measures. The parameter priority consist of values like Highest Risk, Highest ROI and Highest ROI +Unacceptable Risk First. The parameter Risk Measure consist of values like Grid Score, PI Score and Risk Assessment Value. After taking the cost and two values from two parameters, it shows two types of graphs—PI Score Analysis and Number of Unacceptable Risk. In PI Score analysis graph, it shows how much money can reduce how much PI Score at what cost. (C-BRAT calculates risks in the terms of PI Score. The maximum level of the risk in a project can be 2.88.). In Number of Unacceptable Risk graph, it shows how many risk titles can be mitigated with what much money.

Project Cost-Benefit View

  Risk Based:

In this condition, it does not take the cost as input. Just it takes two parameters – desired maximum risk level and risk measure. The first parameter has two values that is Medium and Low. Second parameter has three values Grid Score, PI Score and Risk Assessment Value. Based on the parameter, it draws two types of graphs identical to those described for Investment Based. Meaning of the graphs also identical to above.