If you established a contingency reserve including time, money, and resources, how are you handling risk?

The correct answer is A. Accepting. Establishing a contingency reserve (time, money, and resources) is a form of active risk acceptance. Risk acceptance means the project team acknowledges the risk exists but chooses not to change the plan to deal with it proactively - instead, they set aside reserves to handle…

Predictive, Plan-Based Methodologies

Question

If you established a contingency reserve including time, money, and resources, how are you handling risk?

Options

AAccepting
BTransferring
CAvoiding
DMitigating

How the community answered

(24 responses)

A
92% (22)
B
4% (1)
D
4% (1)

Explanation

Establishing a contingency reserve (time, money, and resources) is a form of active risk acceptance. Risk acceptance means the project team acknowledges the risk exists but chooses not to change the plan to deal with it proactively - instead, they set aside reserves to handle it if it occurs. This contrasts with: avoiding (changing the plan to eliminate the risk entirely), mitigating (reducing the probability or impact), and transferring (shifting the financial impact to a third party, such as via insurance or contract). Contingency reserves are the hallmark of active acceptance, not mitigation.

Topics

#Risk Management#Risk Response Strategies#Contingency Reserve#Risk Acceptance

Community Discussion

No community discussion yet for this question.

Full CAPM Practice