doubt on Contingency plan form PMZIlla tough qs

Submitted by Deepti on Sat, 08/06/2011 - 20:36

Is this statement true??

 Unknown risks cannot be managed proactively, hence contingency plans are used.

As per my understanding Contingency plans exist for known risks. 

As per Rita(page 391):

For the remaining(residual) threats that can't be eliminated:

-Do something if the risk happens (contingency plan)

Appreciate your respone..

Regards,

Deepti

 

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admin

Mon, 08/08/2011 - 11:32

Contingency planning is different from contingency reserves.


You are right in saying that contingency planning can be done for even known risks. Typically its done for high risk items. Risk response is developed as if the risk has genuinely occured.


For managing unknown risks Management reserve is set aside, which typically the sponsor or Sr. Management decide during overall budgeting.

Deepti

Mon, 08/08/2011 - 15:57

Hi Admin,

 

Thansk for the revert. In this case could you please correct the question in PMZilla tough qs..