Program Management Professional (PgMP) — Question 201

Identify the term described in the statement given below? "The use of it should be reviewed along with an assessment of their effectiveness. This will aid the program management in determining if risks to the program are being effectively managed. It also provides feedback to the program management on any projects that need to be recovered or terminated."

Answer options

• A. Budget
• B. Planned Value
• C. Contingency Reserve
• D. Earned Value

Correct answer: C

Explanation

The correct answer is C, Contingency Reserve, as it is specifically set aside to address unforeseen risks and can indicate if projects need intervention. A, Budget, refers to the overall financial plan; B, Planned Value, relates to the value of work planned, and D, Earned Value, measures work completed, none of which directly pertain to assessing risk management effectiveness.