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I have seem place where a clear distinction is made between contingency and risk reserve.
Simply asking if you've seen that, and if you seen any benefit in one or the other.
Is the technologie reserve not a risk reserve? I would have put it there with other risks.
That sound just like one way I have seen it. Estimate them separately and keep both budget on different lines. Then use one or the other according to the source of usage.
The technology allowance is a contingency reserve specific to the part of the project that is using the new technology. However, company policy (or practice) was to keep it as a separate allowance to readily identify it.
I've seen different way of doing in practice. Risk is an uncertainty that if it occur will impact the project, it comprise a serie Known-UnKnown and should have one UnKnown-UnKnown.
What I have seen is a contingency that is pin to some level of estimation uncertainty, where the budget is manage at a more local level.
Risk contingency was manage at the PM level.
And Management Reserve, that is often linked to UnKnown-UnKnown is manage at an Enterprise level, part of it could be at the Program level.
Yes, close to some way I have seen. Contingency reserve is manage more at a task level, Risk reserve at the PM level, and Management at the corporate or client level.
If no risk reserve is given to the project or PM, one would assume that the client is keeping risk and management reserve on is side and would ask the PM to justify any request.
Yes I was asking about your experience on usage of Contingency and Risk reserve.
One way I have seen is :
- Contingency reserve that is pin to some level of estimation uncertainty, where the budget is manage at a more local/task level.
- Risk reserve was manage at the PM level, and
- Management Reserve, that is often linked to UnKnown-UnKnown is manage at an Enterprise level, part of it could be at the Program level.
for me risk reserve is the reserve for any risk, known and unknown.
Vincent, you may also take a look at the following discussion:
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