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What activity will be involved to obtain management reserve?

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yogesh
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What activity will be involved to obtain management reserve?

Postby yogesh Fri Jul 11, 2014 3:25 am

Q1.What activity will be involved to obtain management reserve from the management AND after getting the management reserve? Once we got the management reserve and started using in project do we need change request to update the cost baseline ?

Q2.lets says risk converts to given condition (Issue) can we use management reserve to resolve that issue ?
yogesh
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Re: What activity will be involved to obtain management rese

Postby yogesh Fri Jul 11, 2014 4:42 am

Ans1 : CR will required to move the management reserve to cost baseline. (Rita page-266)

Ans2: ??
namita
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Re: What activity will be involved to obtain management rese

Postby namita Fri Jul 11, 2014 5:34 am

1, Yes definitely we need CR
2, Is this risk already identified as part of risk management? if yes we need to use contingency reserves, else we need to ask for approval on usage of management reserves
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Re: What activity will be involved to obtain management rese

Postby sunku65 Fri Jul 11, 2014 5:45 am

yogesh wrote:
Q2.lets says risk converts to given condition (Issue) can we use management reserve to resolve that issue ?


Question not clear meaning. Can you elaborate it.

Risks weren't converts in to Issue.
Issues (Unknown Unknown Risks) once found need to workaround and use management reserves for that need change request. After approve change request need to update the Performance Baselines(including Cost baseline and if any WBS,schedule, etc).
yogesh
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Re: What activity will be involved to obtain management rese

Postby yogesh Fri Jul 11, 2014 6:53 am

Sorry .I shd have asked like this.

Can we use management reserves for "issues" (issue i mean here is a given condition) ?
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Re: What activity will be involved to obtain management rese

Postby pankaj.barnwal Fri Jul 11, 2014 8:36 am

Issues are nowhere related with Risks. Is there any reference where it is written that issues are "unknown unknown" risnks?
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Re: What activity will be involved to obtain management rese

Postby namita Fri Jul 11, 2014 9:44 am

Agree with Pankaj
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Re: What activity will be involved to obtain management rese

Postby yogesh Fri Jul 11, 2014 12:39 pm

But can we use management reserves for issues ? if can't use the what needs to be used ?
pls confirm
namita
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Re: What activity will be involved to obtain management rese

Postby namita Fri Jul 11, 2014 12:45 pm

No, What is an issue? As per PMBOK5

"A point or matter in question or in dispute, or a point or matter that is not settled and is under discussion or over which there are opposing views or disagreements"

These are known aspects, if while discussing it, something unknown arises, you can use MR with proper Change Control process
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Re: What activity will be involved to obtain management rese

Postby yogesh Fri Jul 11, 2014 12:51 pm

When how that issue will be resolved ?
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Re: What activity will be involved to obtain management rese

Postby namita Sat Jul 12, 2014 2:32 am

Most of the time issue us due to schedule and work items allocated to individuals. PM has to handle it with his managerial skills
yogesh
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Re: What activity will be involved to obtain management rese

Postby yogesh Sat Jul 12, 2014 8:34 am

I found one question on this topic

as its relevant pasting here itself.

"A program manager discovers that a project problem has occured.The problem was never discussed during the risk planning activites or added to the risk register and it will now cost the project money. what is the BEST response ?

A. Don't take any action ,just accept that there is a problem that team did not plan for
B.Stop all the project activity and approach senior management for advice"
C.Add the risk to the risk register and gather information abt its probablity and impact
D.Use management Reserve to cover the costs of the problem

I have picked answer as D. and its correct also.

But i am not clear with this line in question "A program manager discovers that a project problem has occured".
Shd we conside this as risk or issue ??Becuase its saying "problem has occured" so it shdn't be risk any more and its an issue.
If its an issue then we can't use management reserves(As disccused in this thread).

Pls clear this doubt.Thanks
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Re: What activity will be involved to obtain management rese

Postby sunku65 Sat Jul 12, 2014 12:11 pm

That means it is not a Identified Risk. The issue or problem that eat money then it becomes unknown unknown risk.
Then need to workaround then require approve for use management reserves.
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Re: What activity will be involved to obtain management rese

Postby yogesh Sat Jul 12, 2014 4:21 pm

So for workaround "management Reserve" can be used ,Rite?
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Re: What activity will be involved to obtain management rese

Postby sunku65 Sat Jul 12, 2014 5:21 pm

Yep, answer d
Sud
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Re: What activity will be involved to obtain management rese

Postby Sud Sun Jul 13, 2014 10:38 am

HI,

Two Doubts (may not be directly related to the question)-

1> Workarounds/Fallback plan can be for those identified risks also for which the identified respone didn't work. In this case also will Management Reserves be used? Or will contibgency Reserve be used?

2> Can Management Reserve be used for those secondary risks also which arise after implementation of responses to identified risks? Or will contibgency Reserve be used?

3> Residual Risks are also unknown initially so will Management Reserve be used or Contingency reserve?

--Sud
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Re: What activity will be involved to obtain management rese

Postby sunku65 Mon Jul 14, 2014 7:35 am

1> Workarounds/Fallback plan can be for those identified risks also for which the identified respone didn't work. In this case also will Management Reserves be used? Or will contibgency Reserve be used?

2> Can Management Reserve be used for those secondary risks also which arise after implementation of responses to identified risks? Or will contingency Reserve be used?


Workarounds are for only unidentified risks(Unknown Unknown Risks) can go for Management Reserves and get it approved and change request.
Fallback Plan are the specific actions will be taken after failing Contingency Response Plan. I think can go for Management Reserves.

Secondary risks are risks that arise as a direct result of implementing a risk response. While Developing primary risk response, if you suspect this primary risk response is going to creates secondary risks. then assume secondary risk may occur and a contingency reserve is often allocated for time or cost. As same way if you predict Contingency Response plan and Secondary Risk Response plans are going to fail then create Fallback Plan and allocate for time or cost of Contigency Reserves.

Entirely if you didn't not predict and not created any Secondary & Fallback Response strategy plans early, then create corresponding response strategies and use Management Reserves and get it approved.
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Re: What activity will be involved to obtain management rese

Postby sunildubai15 Wed Dec 09, 2015 8:41 am

Dear Experts

Could you be elaborate on the question raised in last by Sud and is the replies by sunku65 is valid .

Regards
Sunil
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Re: What activity will be involved to obtain management rese

Postby ujjal_show Wed Dec 09, 2015 11:40 am

sunildubai15
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Re: What activity will be involved to obtain management rese

Postby sunildubai15 Wed Dec 09, 2015 12:37 pm

Hi Ujjal

I am asking clarification about below questions

Two Doubts (may not be directly related to the question)-

1> Workarounds/Fallback plan can be for those identified risks also for which the identified respone didn't work. In this case also will Management Reserves be used? Or will contibgency Reserve be used?

2> Can Management Reserve be used for those secondary risks also which arise after implementation of responses to identified risks? Or will contibgency Reserve be used?

3> Residual Risks are also unknown initially so will Management Reserve be used or Contingency reserve?
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Re: What activity will be involved to obtain management rese

Postby manishpn Wed Dec 09, 2015 1:09 pm

sunildubai15 wrote:Hi Ujjal

I am asking clarification about below questions

Two Doubts (may not be directly related to the question)-

1> Workarounds/Fallback plan can be for those identified risks also for which the identified response didn't work. In this case also will Management Reserves be used? Or will contingency Reserve be used?
- Management reserve is only used for unknown unknown , any known risk, workaround or planned response is part of contingency reserve

2> Can Management Reserve be used for those secondary risks also which arise after implementation of responses to identified risks? Or will contingency Reserve be used?
- Technically yes as secondary risks are not identified before hand so you can use management reserve but if you risk plan already has mention of which secondary risk might occur if a risk response is implemented then you cannot use management reserve
3> Residual Risks are also unknown initially so will Management Reserve be used or Contingency reserve?
Since residual risk are already identified we cannot use management reserves

Br,
Manish P
PMP, PMI - ACP, SAFe Agilist
http://www.izenbridge.com/blog/7-effect ... ification/
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Re: What activity will be involved to obtain management rese

Postby sunildubai15 Thu Dec 24, 2015 6:20 am

manishpn wrote:
sunildubai15 wrote:Hi Ujjal

I am asking clarification about below questions

Two Doubts (may not be directly related to the question)-

1> Workarounds/Fallback plan can be for those identified risks also for which the identified response didn't work. In this case also will Management Reserves be used? Or will contingency Reserve be used?
- Management reserve is only used for unknown unknown , any known risk, [b]workaround or planned response is part of contingency reserve
[/b]
2> Can Management Reserve be used for those secondary risks also which arise after implementation of responses to identified risks? Or will contingency Reserve be used?
- Technically yes as secondary risks are not identified before hand so you can use management reserve but if you risk plan already has mention of which secondary risk might occur if a risk response is implemented then you cannot use management reserve
3> Residual Risks are also unknown initially so will Management Reserve be used or Contingency reserve?
Since residual risk are already identified we cannot use management reserves



Hi Manish
Just I noticed that you have mentioned that for workaround, contingency reserve can be used???
workaround is a response to unknown unknown risk.... please clarify
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Re: What activity will be involved to obtain management reserve?

Postby jasmeenu Tue Apr 25, 2017 6:03 pm

I found this question online where answer is. A. Cost baseline
B. Cost management plan
C. Contingency reserves
D. Managament reserves
Online answer is D. Management reserves...but i think it should be C. Contingency reserves as in question it says that bugdet is set aside which should be contingency added to cost estimates and also it says that pm is sure he will encounter risk mean risk is known unknown mean he anticipate risk will occur but not sure how much it will cost so to my opinion answer should be C. Contingency reserves
If anyone knows explanation why its D let me know.
Below is the question:

Your team has just bagged a software development project.The executive management is very pleased as this is a very prestigious project.However you are a little worried considering the complex nature of the project.You decide to try and identify the possible risks.You get all relevant stakeholders together and conduct mammoth discussions.Together you have come up with a number of risks.However based on your experience - you still feel that not all the risks have been identified.You decide to set aside some budget for the risks that you have not identified but are sure you will encounter.Where does this budget come from?
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Re: What activity will be involved to obtain management reserve?

Postby VCAB Wed Apr 26, 2017 6:39 pm

This might help with the workaround confusion

https://pmstudycircle.com/2015/03/workaround/

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