PMI Risk Management Professional (PMI-RMP) — Question 2

A risk on the risk register is triggered. This triggered risk costs US$200,000 to mitigate and will overwhelm the project, causing it to fail if not mitigated. The project manager identifies that there is US$200,000 left in the management reserve.
From which of the following sources should the funds be drawn to cover the risk mitigation?

Answer options

• A. Organization management reserve
• B. Unplanned risk reserve
• C. Contingency reserve
• D. Management reserve

Correct answer: C

Explanation

The correct answer is C, the Contingency reserve, which is specifically set aside for identified risks that may occur. The Organization management reserve and Unplanned risk reserve are not designated for specific identified risks, while the Management reserve is typically used for unforeseen issues rather than planned risk mitigations.