PMI-RMP · Question #51
Wendy is the project manager of the FBL project for your company. She has identified several risks within her project and has created a risk contingency reserve of $45,000 total. Her project is…
The correct answer is C. The funds for the risks that have passed and have not happened are released. When identified risks pass without occurring, the contingency reserve funds allocated to those risks are released back to the performing organization. They are not retained, redistributed to the budget, or held until project close.
Question
Wendy is the project manager of the FBL project for your company. She has identified several risks within her project and has created a risk contingency reserve of $45,000 total. Her project is nearly complete and many of the risks have not happened in the project. What should Wendy do with the funds in the contingency reserve?
Options
- AThe funds remain in the contingency reserve until all of the risks have passed.
- BThe funds for the risks that have passed and have not happened are transferred to the project budget.
- CThe funds for the risks that have passed and have not happened are released.
- DThe funds remain in the contingency reserve until the project is closed.
How the community answered
(48 responses)- A15% (7)
- B2% (1)
- C77% (37)
- D6% (3)
Why each option
When identified risks pass without occurring, the contingency reserve funds allocated to those risks are released back to the performing organization. They are not retained, redistributed to the budget, or held until project close.
Retaining funds after a risk has passed without occurring serves no purpose, as the trigger event can no longer happen.
Releasing funds to the project budget would make them available for general spending, which is not the correct disposition for risk reserves.
PMI risk management principles state that contingency reserves are tied to specific identified risk events. Once a risk window passes without the event occurring, the associated reserve is no longer needed and must be released back to the organization or management reserve. Holding unused reserves beyond their risk horizon violates sound financial stewardship practices defined in the PMBOK Guide.
Waiting until project close to evaluate all reserves ignores the principle that reserves should be freed incrementally as their associated risks are retired.
Concept tested: Risk contingency reserve release upon risk retirement
Source: https://www.pmi.org/pmbok-guide-standards/foundational/pmbok
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