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Calculate the Risk to Net Value in a portfolio

Last update: Wed Dec 07 2022 00:00:00 GMT+0000 (Coordinated Universal Time)

CREATED FOR:

  • User

In the Portfolio Optimizer, the Risk to Net Value indicator measures the Potential Risk taking into account the Net Value provided by all projects displayed in the Portfolio Optimizer.

For achieving the most efficiency within the portfolio, you want to see that the Risk indicator is low and the Net Value indicator is high.

The Risk and Net Value indicators are represented from the perspective of how they relate to each other.

Adobe Workfront calculates the Risk and Net Value indicators using the following formulas:

  • The Risk indicator is calculated by the following formula:

    code language-none 
    Risk indicator = Risk / (Risk + Net Value)

  • The Net Value indicator is calculated by the following formulas:

    code language-none 
    Net Value indicator = 1 - Risk / (Risk + Net Value)

    Or

    code language-none 
    Net Value indicator = Net Value / (Risk + Net Value)
NOTE
The Risk to Net Value indicator calculates based on the projects that you display in the Portfolio Optimizer, and not on all the projects which are associated with the portfolio.
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