Plan Risk Responses - Management Reserve

Exclusive forum for iZenBirdge PMP® clients
salman_2005
Participant
Participant
Posts: 58
Joined: Wed Sep 26, 2018 8:15 pm

Plan Risk Responses - Management Reserve

Postby salman_2005 Sat Oct 20, 2018 7:09 pm

Hi Manish,
If the risk doesn't materialize and the risk response plan remains unutilised, so the reserve created i.e cost reserve would go into management reserve or it would be returned to the organisation? In both the cases, the cost baseline would get reduced.

In case of schedule reserve unutilised, it would impact the duration of the project (Schedule baseline) by reducing the no of days or we can keep this reserve so that we can manage the unknown unknown, just to be on a safer side.

Please clarify.
manishpn
Expert
Expert
Posts: 2588
Joined: Sat Jan 04, 2014 3:55 pm

Re: Plan Risk Responses - Management Reserve

Postby manishpn Sat Oct 20, 2018 7:39 pm

salman_2005 wrote:Hi Manish,
If the risk doesn't materialize and the risk response plan remains unutilised, so the reserve created i.e cost reserve would go into management reserve or it would be returned to the organisation?
returned back to the Project Sponsors budget, Sponsor can decide where does that money should be utilized

In both the cases, the cost baseline would get reduced.
Yes it would

risks are periodically reviewed, if PM decides a given risk is no longer valid then the risk register is updates and a CR is raise to surrender the money related to that risk , so cost reserve is reduced, cost baseline also updated.



In case of schedule reserve unutilized, it would impact the duration of the project (Schedule baseline) by reducing the no of days or we can keep this reserve so that we can manage the unknown unknown, just to be on a safer side.
in Case of schedule its there is no mandate to reduced the days , PM can keep it if the scope is not reduced a lot and stakeholders are not asking for reduced schedule

Please clarify.
Last edited by manishpn on Sat Oct 20, 2018 7:45 pm, edited 1 time in total.
Br,
Manish P
PMP, PMI - ACP, SAFe Agilist
http://www.izenbridge.com/blog/7-effect ... ification/
salman_2005
Participant
Participant
Posts: 58
Joined: Wed Sep 26, 2018 8:15 pm

Re: Plan Risk Responses - Management Reserve

Postby salman_2005 Sat Oct 20, 2018 7:43 pm

Understood. Thanks a lot!

Return to “PMP® Queries and Tips”

Who is online

Users browsing this forum: No registered users and 2 guests