ExpertHard1 markMultiple Choice
PMP · Question 17 · Task 5: Plan and manage budget and resources
A project manager discovers a major design flaw that was not identified in the risk register. Fixing it requires $50,000. The project has $20,000 in Contingency Reserves and $60,000 in Management Reserves. How should the project manager fund this fix?
A project manager discovers a major design flaw that was not identified in the risk register. Fixing it requires $50,000. The project has $20,000 in Contingency Reserves and $60,000 in Management Reserves. How should the project manager fund this fix?
Answer options:
A.
Use the Contingency Reserve.
B.
Use the Management Reserve immediately.
C.
Submit a change request to use the Management Reserve.
D.
Ask the sponsor for additional funding outside the project budget.
How to approach this question
Identify the type of risk (unidentified) -> Management Reserve. Identify the process -> Change Request.
Full Answer
C.Submit a change request to use the Management Reserve.✓ Correct
C
Contingency = Identified Risks. Management = Unidentified Risks. Moving money from Management Reserve to the Baseline always requires a Change Request.
Common mistakes
Using Contingency for unidentified risks, or spending Management Reserve without approval.
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