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PMI-RMP · Question #13

Ted is the project manager of the HRR project for his company. Management has asked that Ted periodically reviews the contingency reserve as risk events happen, pass, or are still pending. What is…

The correct answer is A. It helps to evaluate if the remaining reserve is adequate for the risk exposure. Reviewing the contingency reserve as risk events are resolved or remain pending allows the project manager to assess whether the remaining reserve is still sufficient for the outstanding risk exposure.

Risk Monitoring and Reporting

Question

Ted is the project manager of the HRR project for his company. Management has asked that Ted periodically reviews the contingency reserve as risk events happen, pass, or are still pending. What is the purpose of reviewing the contingency reserve?

Options

  • AIt helps to evaluate if the remaining reserve is adequate for the risk exposure.
  • BIt helps to determine how much more funds will need to be invested in the project.
  • CIt helps to evaluate secondary and residual risks related to the risk responses and their costs.
  • DIt helps to determine the probability and impact of project risks.

How the community answered

(31 responses)
  • A
    90% (28)
  • C
    6% (2)
  • D
    3% (1)

Why each option

Reviewing the contingency reserve as risk events are resolved or remain pending allows the project manager to assess whether the remaining reserve is still sufficient for the outstanding risk exposure.

AIt helps to evaluate if the remaining reserve is adequate for the risk exposure.Correct

As risk events occur, pass, or remain pending, the contingency reserve is consumed or no longer needed for certain risks. Periodically reviewing the reserve ensures the remaining funds are adequate to cover the probability-weighted cost of risks that are still active. This review directly supports informed decisions about whether reserve adjustments are necessary.

BIt helps to determine how much more funds will need to be invested in the project.

Determining how much additional funding is needed is a separate funding decision and is not the primary purpose of a contingency reserve review.

CIt helps to evaluate secondary and residual risks related to the risk responses and their costs.

Evaluating secondary and residual risks is part of risk response planning and ongoing risk monitoring, not the specific purpose of reviewing the contingency reserve balance.

DIt helps to determine the probability and impact of project risks.

Determining the probability and impact of risks is performed during qualitative and quantitative risk analysis processes, not during contingency reserve reviews.

Concept tested: Contingency reserve review during risk monitoring

Source: https://www.pmi.org/pmbok-guide-standards/foundational/pmbok

Topics

#Contingency Reserve#Risk Monitoring#Reserve Analysis#Risk Exposure

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