Proper project management
requires the use of reserves to
cover the cost and time risk in a
Identify which activities on the
Project have significant risks and
determining how much time and
money to set aside to account for
the risks if they occur.
Are Used for known
risks, which are
Part of controlling cost
whether the contingency
reserves are still
necessary or whether
new reserves are
For Example:Let's say a Project team identifies a highly ranked risks and sets aside a contingency reserve to address that risk, should the need arise.If the risks does no occur and it is determined that the risk is no longer a threat, the contingency reserver can be removed from the cost baseline (and subsequently the cost Budget).
Another example risk reassessment on a Project may identify new risks, which could lead to a decisión to increase the contingency reserves.
Both of these examples result in a change request being submitted through integrated change control.
Is used to accommodate
unknown risks or unidentified
Analysis of de management reserves
may also indicate that too many
unknown risk events are occurring,
suggesting that the risk management
efforts in planing were inadequate and
need to be recalculated.
Reserve analysis allows you to
evaluate and incorpórate those
lessons learned into your Project
through Control Cost Process.
Reserve analysis is used to
evaluate those estimated cost
impacts to the entire Project to
keep Project work moving forward.