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Management reserve

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Gul
Posts: 10
Joined: Sun Sep 17, 2017 6:40 pm

Management reserve

Postby Gul Mon Oct 16, 2017 8:31 pm

I have just one doubt about Management reserve.
in case unknown risk occurred and with management approval, we used some % of Management reserve to manage this unknown risk.
The use of this management reserve will it impact the cost budget baseline as well as cost baseline..?
in addition, will it reduce the percentage of management reserve after this use..?
manishpn
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Expert
Posts: 2202
Joined: Sat Jan 04, 2014 3:55 pm

Re: Management reserve

Postby manishpn Tue Oct 17, 2017 6:04 pm

Management reserve is not transparent to PM, so when you get approval to use Management reserve how much % of reserve is left is not known to PM and PM should not worry about it.
usually Management reserve is not part of performance measurement so even if some Mgmnt reserve is approved when an unknown risk occurs it does not add to projects Cost budget
Br,
Manish P
PMP, PMI - ACP, SAFe Agilist
http://www.izenbridge.com/blog/7-effect ... ification/
Gul
Posts: 10
Joined: Sun Sep 17, 2017 6:40 pm

Re: Management reserve

Postby Gul Tue Oct 17, 2017 6:48 pm

manishpn wrote:Management reserve is not transparent to PM, so when you get approval to use Management reserve how much % of reserve is left is not known to PM and PM should not worry about it.
usually Management reserve is not part of performance measurement so even if some Mgmnt reserve is approved when an unknown risk occurs it does not add to projects Cost budget


thanks for calarification

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