What is Sensitivity Analysis?

Sensitivity Analysis in project management is analogous to putting your project through different weather conditions to understand how it will react to changes or uncertainty. In projects, it entails investigating how changes or variations in particular parameters, like as costs, time, or hazards, might impact the project’s outcome. By experimenting with these variables, you may determine how sensitive your project is to various scenarios, as well as which components may have the most influence and how the project may function under various conditions. It serves as a stress test for your project, allowing you to better plan for unforeseen changes and make smarter decisions to ensure its success.