Question 17 of 100Question ID:612253Reserve analysis indicates that the remaining contingency reserves of a project are insufficient to cover the cost of implementing the risk responses that are currently underway. However, the existing management reserves should be adequate to cover the immediate need, as well as the remaining risk in the project.What is the best course of action in this situation?

RISK MANAGEMENT

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	ASubmit a change request to access the contingency reserves
B	BAsk the project sponsor to increase the project budget
C	CSubmit a change request to transfer the management reserves into the cost baseline
D	DUse the existing management reserves as needed since they are included in the project budget

Explanation:

Detailed explanation-1: -It is used to cover the cost of potential risks and uncertainties in the project. Therefore, Contingency reserve is released or consumed by the project team as each of the risks is passed. Contingency is usually included in budgets as a control account.

Detailed explanation-2: -The contingency reserve is for identified risks and is a part of your cost baseline while the management reserve is for unidentified risks and is a part of your budget.

Detailed explanation-3: -Project contingency reserve in project management refers to an allocation of the budget at a high level that is specifically reserved for project unknowns. This contingency reserve is allocated following the identification of project risks and uncertain events.

There is 1 question to complete.

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RISK MANAGEMENT