Critical Events and Event Chains
The single events or the event chains that have the most potential to affect the projects are the “critical events” or “critical chains of events.” By identifying critical events or critical chains of events, we can mitigate their negative effects. These critical chains of events can be identified by analyzing the correlations between main the project parameters, such as project duration or cost, and the event chains.
Critical chains of events based on cost and duration may differ. Critical event chains based on duration are calculated using the following approach. For each event and event chain on each iteration the cumulative impact of risk on duration is calculated. Events or event chains can be displayed using a tornado diagram where critical event chains are shown on the top: