1. After calculated the Risk Value for each of 18 Risks, you will be adding up all of the Risk Values to Contingency Reserve. Remember that opportunities will create negative Risk Values which need to be subtracted from the Contingency Reserves. Since they have a positive effect on the project, they should be subtracted from the Contingency Reserve.
2. Question: Why don't we just create the Contingency Reserve with the full cost of each Risk? Why multiply by the probability first?
4. What would be wrong with having a Contingency Reserve which covered the actual project costs if all Risks occurred?