[whats difference between workaround AND management reserves

[yogesh]

[RISK]whats difference between workaround AND management reserves ? Which one to be used under which scenario ??

[pankaj.barnwal]

Management reserve is reserve, used for unknown event that has happened, for which cost and time reserve is kept (i.e. for Passive Accepted Risk).

As per PMBOK, Workaround. A response to a threat that has occurred, for which a prior response had not been planned or was not effective.
So, workaround is "response action" that is done when Passive Accepted Risk has occurred.

[yogesh]

Passive Acceptance: I don't want to do anything for this set of risk .if it happen then that time will do some work around.
So u mean this workaround is done using management reserve.

If thats the case i don't think its correct.

My understanding is:
Workaround: We know about some set of low priorty risk but they are very low priorty risk and we don't want to take any action for them.So risk is known but we are not taking any action.we will handle with some type of workaround.

Management reserve is "unknown unknown" means we don't know the risk and we don't whether it will occur.but when that risk occur we use management reserve.they can be high priority which can damage project.

Pls chk whether my understanding is correct?

[yogesh]

namita, Pls help to clarify this doubt.Thanks

[namita]

I am not sure why this question has come in first place but let me try to answer..

1. Workaround is a response whereas Management reserve is the reserve which will be used to respond
2. Workaround is not planned in advance (unknown), Management reserves is for unknown unknown

I suppose your understanding on management reserves is correct but not on workarounds. Anything which is identified (primary, secondary, residual) is not workaround as contingency is planned for that

What is workaround? as per PMBOK 5

A response to a threat that has occurred, for which a prior response had not been planned or was not effective.

Now workaround can be part of corrective actions which has been decided to bring the project on track again. Now it was not identified as risk that project will go off track due to the reason happened at the beginning. Therefore Adhoc call is required for this

Go through below blog for reserves insight

http://www.izenbridge.com/blog/continge ... t-reserve/

[pankaj.barnwal]

Please help me understand: there are 4 strategies for Risks:
1. Avoid/Exploit
2. Transfer/Share
3. Mitigate/Enhance
4. Accept (Active/Passive)
So, you plan risk response for first 3 risk strategies and allocate time and cost reserve to them. So, this is not catered by contingency reserve. But for accepted risk (active and passive), we keep contingency reserve. Also, for residual risks and secondary risks (both) of first 3 risk strategies, contingency reserve is kept.

Am I right?

[namita]

Yes for all these contingency reserves are kept because all these are identified but response is different for these. Go through risk response strategies blogs at below link for more insight

http://www.izenbridge.com/blog/how-to-h ... trategies/
http://www.izenbridge.com/blog/learn-ho ... rtunities/