Expected monetary value analysis: (1 1.4.2.2 Quantitative risk analysis and modeling technology)
A statistical technique used to calculate the average results when certain situations may or may not occur in the future. Commonly used in decision tree analysis. (Analysis under Uncertainty)
The EMV of an opportunity is usually expressed as a positive value, while the EMV of a threat is expressed as a negative value. EMV is based on the assumption of risk neutrality, neither hedging nor taking risks.
The EMV of a project can be calculated by multiplying the numerical value of each possible result by its occurrence probability, and then adding all the products.
EMV= European Payment+MasterCard +Visa
The name of EMV comes from the prefixes of English names of three international organizations: Europay, MasterCard and VISA. EMVCo was established by these three organizations in February 1999. It is mainly responsible for developing and maintaining the specifications, standards and certification of EMV payment chip cards, and supervising and ensuring the global interoperability of standards and the availability of payment environment.
EMV is a standard specification for professional transactions and authentication for smart cards and POS terminals that can use chip cards and ATMs widely set up by banking institutions. It is a standard set of related software and hardware of chip credit cards and cash card payment systems. When the specifications of the terminal and ATM equipped with "chip card" or readable chip card meet the EMV standard and are verified to be correct, it is called EMV chip card, also known as EMV card. In this international standard specification, a considerable number of chip card interface standards are completed according to ISO 78 16. Europay International was merged into MasterCard in 2002. JCB (formerly known as Japan Credit Bureau) joined the EMV organization in June 2004. The specification of EMV was originally EMV 96 version 3. 1. 1. EMVCo released EMV version 4.0 in June 2000, 4. 1 in May 2004 and 4.3 in June 2002.
In the field of project management, expected monetary value (EMV), also known as risk exposure value and risk expectation value, is a quantitative risk analysis technique, which is often used with decision trees. It multiplies the monetary consequences of possible risks in a specific situation by the probability of occurrence. This project includes consideration of risk and cash.
Positive values indicate opportunities, and negative values indicate risks. The numerical value of each possible result is multiplied by the probability of occurrence, and then added.