PMP Question1

Submitted by amyousry on Sun, 07/07/2013 - 11:25

A project manager and the project team identify several specific risks in a project. The expected value of these risks is estimated at $10,000. The impact on the project brought about by these risks is estimated at $40,000. What value should be entered into the management reserve for these risks?

a. $10,000
b. $40,000
c. $0
d. $25,000

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soulsolution

Sun, 07/07/2013 - 14:41

Is that a real question or did you make it up? IMO, there should be an option for 'none of the above' since Management Reserves are not based on any formula. It's totally the management's discretion, how much money to put aside as mgmt reserve. Anyone agrees?

elthox

Sun, 07/07/2013 - 15:06

 Furthermore, management reserves are considered for unknown unknown risks. In the question is mentioning about identified risks whose are not considered through management reserves.

pmpnewster

Sun, 07/07/2013 - 16:46

 

c) $ 0

 

Regards.

 

Alpha_romeo0

Sun, 07/07/2013 - 17:47

 It should be 0

 

Since these are "expected risks" AKA known, unknowns. Hence not in management reserve but in contingency reserve.