= P × [(C + T + Q) + 3]P is ProbabilityC is CostT is...

According to theCMAA Standards of Practicein theRisk Managementsection, risk quantification often uses formulas combiningprobability (P)andimpact factorssuch asCost (C),Time (T), andQuality (Q)to compute anoverall risk score.

The CMAA explains:

“Risk scoring combines the likelihood (probability) of occurrence with the magnitude of its potential impact across cost, time, and quality metrics. The resultant value represents the overall risk score used for prioritization in the risk register.”

The given formula aligns directly with that concept — it mathematically expresses aweighted overall risk score, not a simulation or isolated variable measure. AMonte Carlo simulationis a separate probabilistic modeling technique, not a single-score formula.