You are the project manager of the HJH project for your company. In your project, you have created the probability-impact risk matrix as shown in the following figure: If Risk D happens in this…

The correct answer is B. $233,500. This question references a probability-impact matrix figure not included in the text, so the exact calculation cannot be reproduced here. However, the concept is: the contingency reserve is calculated as the sum of the Expected Monetary Values (EMV) of all identified risks…

Risk Monitoring and Reporting

Question

You are the project manager of the HJH project for your company. In your project, you have created the probability-impact risk matrix as shown in the following figure:

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

Options

A$440,000
B$233,500
C$258,500
D$243,500

How the community answered

(61 responses)

A
5% (3)
B
84% (51)
C
10% (6)
D
2% (1)

Explanation

This question references a probability-impact matrix figure not included in the text, so the exact calculation cannot be reproduced here. However, the concept is: the contingency reserve is calculated as the sum of the Expected Monetary Values (EMV) of all identified risks (Probability × Impact for each risk). When Risk D occurs, its actual cost impact is deducted from the total contingency reserve. The remaining balance of $233,500 reflects the total EMV of all other risks minus the actual cost absorbed by Risk D. On the exam, you would use the matrix values to compute: Total Reserve − Impact of Risk D = $233,500.

Topics

#Contingency Reserve#Risk Response Implementation#Risk Budgeting#Quantitative Risk Analysis

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