Contingency reserves are set up to cover identified risks associated with specific segments of a project while management reserves are set up to cover unidentified risks associated with the total project.

Question

Quizplus · Accepted Answer

Contingency reserves are indeed allocated for known risks that have been identified and quantified during the risk management process, aimed at specific project activities. Management reserves, on the other hand, are set aside for unforeseen work that falls outside the scope of the identified risks, covering unknown risks that affect the entire project.

Contingency Reserves Are Set Up to Cover Identified Risks Associated