When establishing a contingency reserve, including time, money and resources, how is the risk being handled?

The correct answer is D. Mitigating. Establishing a contingency reserve (time, money, or resources) is a risk mitigation technique because it reduces the impact of a risk event if it occurs. By proactively setting aside buffer resources, the team lessens the severity of the risk's effect on the project. Accepting (A

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Question

When establishing a contingency reserve, including time, money and resources, how is the risk being handled?

Options

AAccepting
BTransferring
CAvoiding
DMitigating

How the community answered

(15 responses)

B
7% (1)
D
93% (14)

Explanation

Establishing a contingency reserve (time, money, or resources) is a risk mitigation technique because it reduces the impact of a risk event if it occurs. By proactively setting aside buffer resources, the team lessens the severity of the risk's effect on the project. Accepting (A) means acknowledging the risk without proactive action (passive) or simply noting it. Transferring (B) shifts the risk to a third party (e.g., insurance). Avoiding (C) eliminates the risk entirely by changing the plan. Note: PMBOK 6th edition also categorizes contingency reserves under 'active acceptance,' making this a nuanced topic, but the prevailing exam logic ties reserves to mitigating impact.

Topics

#Contingency Reserve#Risk Management#Risk Response Strategies#Mitigation

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