Sensitivity and Common Cause Effects

  • Ivan Damnjanovic
  • Kenneth Reinschmidt
Part of the Risk, Systems and Decisions book series (RSD)


In this chapter we discuss the sensitivity of the project performance outcomes such as the total project cost to the uncertainty in work packages. We provide two approaches to this critical step for developing risk mitigation strategies, one based on calculating derivatives of the total variance with the respect to work package of interest, and the other one based on the correlation between the total cost and the work package. Further, this chapter introduces another important analysis for designing proper mitigation strategies – determining the effects of common cause events on the correlation and ultimately on the total cost.


Sensitivity Common cause events Correlation 


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Copyright information

© Springer Nature Switzerland AG 2020

Authors and Affiliations

  • Ivan Damnjanovic
    • 1
  • Kenneth Reinschmidt
    • 2
  1. 1.Texas A&M UniversityCollege StationUSA
  2. 2.College StationUSA

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