PMI-RMP · Question #388
During project execution, the project team realizes that the power outlet for imported equipment is not compatible with the current customer's electrical infrastructure. This event was originally…
The correct answer is D. Contingency reserve. Contingency reserves are allocated specifically for identified risks-known unknowns-that have documented response plans. The power outlet incompatibility was formally identified as a risk during planning, and the response plan (purchase a power adapter) was already documented…
Question
During project execution, the project team realizes that the power outlet for imported equipment is not compatible with the current customer's electrical infrastructure. This event was originally identified as a risk during earlier stages of the project and the associated risk response indicated a plan to purchase a new power adapter. Which project fund will be used to cover this cost?
Options
- AManagement reserve
- BManagement budget
- CProject budget
- DContingency reserve
How the community answered
(24 responses)- A8% (2)
- B8% (2)
- C4% (1)
- D79% (19)
Explanation
Contingency reserves are allocated specifically for identified risks-known unknowns-that have documented response plans. The power outlet incompatibility was formally identified as a risk during planning, and the response plan (purchase a power adapter) was already documented. When that risk materializes, the pre-planned contingency reserve is the correct funding source. Management reserves are reserved for unidentified risks (unknown unknowns) and require management approval to access. Using the contingency reserve here is exactly the intended use case.
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