Sensitivity analysis

The analysis of the possible effects of adverse changes on a project. Values of key variables are changed one at a time, or in combinations, to assess the extent to which the overall project result, measured by the economic net present value, would be affected. Where the project is shown to be sensitive to the value of a variable that is uncertain, that is, where relatively small and likely changes in a variable affect the overall project result, mitigating actions at the project, sector, or national level should be considered, or a pilot project implemented.