A project manager discovers a major design flaw that was not identified in the risk register. Fixing it requires $50,000. The project has $20,000 in Contingency Reserves and $60,000 in Management Reserves. How should the project manager fund this fix?

Answer options:

Use the Contingency Reserve.

Use the Management Reserve immediately.

Submit a change request to use the Management Reserve.

Ask the sponsor for additional funding outside the project budget.

How to approach this question

Identify the type of risk (unidentified) -> Management Reserve. Identify the process -> Change Request.

Full Answer

C.Submit a change request to use the Management Reserve.✓ Correct

Contingency = Identified Risks. Management = Unidentified Risks. Moving money from Management Reserve to the Baseline always requires a Change Request.

Common mistakes

Using Contingency for unidentified risks, or spending Management Reserve without approval.

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