You've set aside a certain amount of your project funds to cover key, identified risks. What specifically did you use to determine how much should go into this fund?

Question

go into this fund?

a. Bottom-up estimate

b. Reserve analysis

c. Variance analysis

d. Upside-risk estimate

Muhammad Farooq · Answer

B – The reserve analysis is explicitly used for determining risk contingency reserve amounts.

Khatija Khatija · Answer

Budget Amount is determined by similar projects incurred. Increases in budget are determined by Inflation rate. Also research is done to determine "new costs" associated with the project. These costs are then included in the budget.

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You've set aside a certain amount of your project funds to cover key, identified risks. What specifically did you use to determine how much should go into this fund?

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