PMP Practice: Develop and execute risk response strategies

Pepper Lindström-Ali is managing a manufacturing automation project for Bayou Intelligence Corp. During risk planning, the team identifies a supplier delivery risk. If the specialized robotic components arrive late, the project will incur additional labor costs. The team estimates there is a 35% probability the supplier will be late. If the delay occurs, the cost impact will be $28,000. If components arrive on time, there is no additional cost. Pepper needs to calculate the expected monetary value of this risk to include in the risk budget. What is the expected monetary value (EMV) of this risk event?