PGMP · Question #231
Identify the term described in the statement given below? "The use of it should be reviewed along with an assessment of their effectiveness. This will aid the program management in determining if risk
The correct answer is C. Contingency Reserve. Contingency reserves are funds or time buffers set aside to address identified risks, and their use must be reviewed to evaluate whether risk responses are effective.
Question
Identify the term described in the statement given below? "The use of it should be reviewed along with an assessment of their effectiveness. This will aid the program management in determining if risks to the program are being effectively managed. It also provides feedback to the program management on any projects that need to be recovered or terminated."
Options
- ABudget
- BPlanned Value
- CContingency Reserve
- DEarned Value
How the community answered
(23 responses)- A4% (1)
- B13% (3)
- C74% (17)
- D9% (2)
Why each option
Contingency reserves are funds or time buffers set aside to address identified risks, and their use must be reviewed to evaluate whether risk responses are effective.
Budget refers to the total approved cost baseline for the program, not a risk management tool whose effectiveness is reviewed for risk mitigation feedback.
Planned Value is an earned value metric representing the authorized budget assigned to scheduled work, not a reserve reviewed for risk management effectiveness.
Contingency reserves are allocated specifically to manage known risks within a program. Reviewing their usage tells program management whether risk mitigation efforts are working and whether any projects need recovery or termination based on how reserves are being consumed.
Earned Value measures the value of work actually performed against the plan, and is a performance measurement metric, not a risk reserve subject to effectiveness review.
Concept tested: Contingency reserve review for risk management
Source: https://www.pmi.org/pmbok-guide-standards/foundational/standard-for-program-management
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