Consider the risk probability-impact matrix in the figure given below: If Risk B happens in this project, how much will be left in the contingency reserve?

The correct answer is A. $193,500. This question references a probability-impact matrix figure that assigns each risk a monetary value based on probability × impact, and a total contingency reserve is established from the sum of all expected monetary values (EMV). When Risk B occurs, its full impact cost is drawn

Risk Monitoring and Reporting

Question

Consider the risk probability-impact matrix in the figure given below:

If Risk B happens in this project, how much will be left in the contingency reserve?

Options

A$193,500
B-$334,500
CIt depends on the total budget of the project.
D$148,300

How the community answered

(53 responses)

A
85% (45)
B
6% (3)
C
8% (4)
D
2% (1)

Explanation

This question references a probability-impact matrix figure that assigns each risk a monetary value based on probability × impact, and a total contingency reserve is established from the sum of all expected monetary values (EMV). When Risk B occurs, its full impact cost is drawn from the contingency reserve. Based on the values in the referenced figure (not reproduced here), the total contingency reserve minus the cost of Risk B leaves $193,500 remaining. The correct approach is: Remaining Reserve = Total Contingency Reserve − EMV of Risk B. Option A ($193,500) is the result of that calculation per the figure's data.

Topics

#Contingency Reserve#Risk Response#Financial Impact#Risk Monitoring

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