PMI-RMP · Question #320
During the initial risk planning process, the risk manager and project manager discuss ways to handle known risks. Which project reserve should the project manager use to budget for known risks?
The correct answer is B. Contingency reserve. Contingency reserves are specifically allocated to address known risks - risks that have been identified, analyzed, and included in the risk register. These reserves are calculated based on the expected monetary value or probabilistic analysis of identified risks. Management rese
Question
During the initial risk planning process, the risk manager and project manager discuss ways to handle known risks. Which project reserve should the project manager use to budget for known risks?
Options
- ABudget reserve
- BContingency reserve
- CChange management reserve
- DRisk reserve
How the community answered
(25 responses)- A8% (2)
- B88% (22)
- C4% (1)
Explanation
Contingency reserves are specifically allocated to address known risks - risks that have been identified, analyzed, and included in the risk register. These reserves are calculated based on the expected monetary value or probabilistic analysis of identified risks. Management reserves, by contrast, are set aside for unknown risks (unknown unknowns) that were not anticipated during planning. Options A (budget reserve), C (change management reserve), and D (risk reserve) are not standard PMBOK terminology for this purpose. Since the question specifies 'known risks,' contingency reserve is the correct and precise answer.
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