The risk manager completes risk response planning. The risk manager believes that to effectively address all eventualities, an additional action is required. What should the program manager do next?

Question

Options

• ATransfer a percentage of known risks.
• BEstablish a contingency reserve.
• CAvoid known critical project threats.
• DPerform a final review of project scope.

• A
  6% (1)
• B
  72% (13)
• C
  17% (3)
• D
  6% (1)

Explanation

Risk response planning addresses identified (known) risks with specific avoidance, mitigation, transfer, or acceptance strategies. However, residual risks-those remaining after responses are applied-and unknown risks ('unknown unknowns') are always present. Establishing a contingency reserve (budget and/or schedule buffer) is the standard next action to cover these eventualities. Options A and C (transferring or avoiding risks) are response strategies already completed in risk response planning. Option D (final scope review) does not directly address the need for an additional action to handle all eventualities.

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