Sensitivity Analysis is implemented in a project to analyze the various risks to the project by looking at all aspects of the project and their potential impact on the overall goal. A sensitivity analysis determines which of the given solutions is the most viable given what we know about the rest of the project. A sensitivity analysis is often used to support a cost-benefits analysis, but can also be done independently.

Sensitivity analysis allows us to identify which task’s duration with uncertainty has the strongest correlation with the finish time of the project. It answers the question, which task inputs have the greatest impact on the key project objectives. This in turn provides clues to where project managers should look first when a management decision is required.

The main goal of sensitivity analysis is to help organizations uncover potentially overlooked financial vulnerabilities. Sensitivity analysis is also a reliable way to uncover the hidden levers that have the greatest impact on business decisions.

The main purpose of sensitivity analysis is to implement accounting and predict what effect the input parameters of the project on the resulting indicator. The most convenient option in favor of the relative change of the input parameter, for example a change of all cash flows of a few percent, as well as an analysis of the changes in the resulting figures. The most important for the sensitivity analysis is to assess the impact of changes of the input parameters in order to allow for the worst-case scenario.