Contingencies: A Contingency is the planned allotment of time and cost for unforeseeable elements with a project. Including contingencies will increase the confidence of the overall project.
Once risks have been identified and assessed, a project manager must decide what is the appropriate response. Can the probability be reduced or the impact mitigated?
- Read the the sections Risk Mitigation and Contingency Plan in the prescribed textbook (Web | PDF | EPUB | MOBI), Chapter 15 (pages 145 and 146 in the PDF version).
- Ensure you understand the differences between the four mitigation approaches.
- Using the risks previously identified, determine the mitigation approaches you would use.
- For the high risks you have identified, estimate the cost. Should a contingency budget be allocated for the risk? Why?
For a project that you are aware of identify ONE high risk, and describe the mitigation approach you would use. Detail the reason for allocating or not allocating a contingency budget. Post your comment below and then look on the course feed page to see what others have posted.
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