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PMP (Project Management Professional) · Question

What is the term for funds allocated to address risks that are identified but cannot be specifically planned for?

Management reserves are for unknown-unknown risks, providing funds for unforeseen changes to project scope and cost.

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Question: What is the term for funds allocated to address risks that are identified but cannot be specifically planned for?

Answer options: ✅ Management Reserve

  • Contingency Reserve
  • Cost Baseline
  • Estimate at Completion (EAC)

Correct answer: Management Reserve

Explanation: Management reserves are for unknown-unknown risks, providing funds for unforeseen changes to project scope and cost.

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