contingency reserve

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contingency reserve

Postby skmpmp_2015 Sat Jan 09, 2016 5:20 am

If we allocate contingency reserve to a risk and the particular risk didn't occur, what we do with the reserve? It remains with the cost baseline or does it change?
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Re: contingency reserve

Postby niranjan Sat Jan 09, 2016 6:10 am

Contingency reserve always stays with the cost baseline.
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Re: contingency reserve

Postby ujjal_show Sat Jan 09, 2016 6:57 pm

niranjan wrote:Contingency reserve always stays with the cost baseline.

this is not correct.

reserve analysis is used to monitor the status of contingency and management reserves for the project to determine if these reserves are still needed or if additional reserves need to be requested. As work on the project progresses, these reserves may be used as planned to cover the cost of risk mitigation events or other contingencies.

if the probable risk events do not occur, the unused contingency reserves may be removed from the project budget to free up resources for other projects or operations.

Additional risk analysis during the project may reveal a need to request that additional reserves be added to the project budget.

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