Integration between EVM and Risk Management: proposal of an automated framework

Abstract

The integration between Earned Value Management (EVM) and Project Risk Management immediately raises the question of the relationship between the two methods, even though EVM and project risk management share the same function in project management: promote the project success. At first glance it seems to be no further connection between these two methodologies, but the fundamentals of EVM are fully influenced by both risk management and risk analyses. This paper seeks to clarify the mechanisms of this function, and in which points they meet or affect each other, with reference to PMBoK®. The several techniques and methods are somewhat disperse and not always coherent. With the several assumptions resulting from the interconnection between the two methods, a framework of integration between them is proposed, as well as its practical implementation in Excel, resulting in a set of tools that can be useful in monitoring and controlling a project.