Senior Projects Manager | Field & Marten AssociatesNew Westminster, British Columbia, Canada
Unknown unknowns are things we haven’t thought of that could affect us, that is there are limitations to our knowledge or awareness. It is more or less assumed that, if we haven’t given these unidentified factors any thought and they could affect us, it will be bad for the project if they do occur although we can’t be certain because we are not sure what they are.
The plans you can set for those risks are limited, again, because you do not know much about their nature and that's why the associated cost estimates falls under Management Reserve which is not part of the cost baseline but it is part of the Overall Project Budget.
Unknown unknowns are things we haven’t thought of that could affect us, that is there are limitations to our knowledge or awareness. It is more or less assumed that, if we haven’t given these unidentified factors any thought and they could affect us, it will be bad for the project if they do occur although we can’t be certain because we are not sure what they are.
The plans you can set for those risks are limited, again, because you do not know much about their nature and that's why the associated cost estimates falls under Management Reserve which is not part of the cost baseline but it is part of the Overall Project Budget.
Thanks Saving Changes...
AKSHAY JAINPlanning Group Leader| YOKOGAWA, BahrainGwalior, Mp, India
After a certain limit you have to accept risk and there is no plan to protect project from risk. If a Tsunami comes world cant remain in existing state. Only some damages can be saved.
After a certain limit you have to accept risk and there is no plan to protect project from risk. If a Tsunami comes world cant remain in existing state. Only some damages can be saved.
Thanks alot, your comment is appreciated Saving Changes...
Understand your talking about a known-unknown risk.
After some mitigation action, the residual risk may need one or more contingency plan According to the risk. Could be a communication plan! Saving Changes...
Stéphane ParentSelf Employed / Semi-retired| Leader MakerPrince Edward Island, Canada
The contingency plan is for when a risk is triggered. A fallback plan, as suggested by Anupam, is for when your contingency plan fails. Saving Changes...
Hello David,
If you have a contingency plan in place and you are taking actions as per the plan then you are managing the risk proactively.
If you are having a contingency reserve for that particular risk and have no action plan to reduce the effect or probability, then you are accepting the risk passively. This is ok for small risks which fall within risk tolerance level of your organization or project.
If the effect is more than the tolerance level, then you need to have a contingency plan and implement the plan to reduce the impact to acceptable level or drop the project. Saving Changes...
Shivaram Y.SDirector| Vivin SynergySharjah, Sharjah, United Arab Emirates
Contingency Plan is very well prepared initially by giving % values to design, procurement and construction and commissioning based on corporate policy , and calculating and planning accordingly.
But however, as everybody knows, projects may not behave the way it was thought to be,
Hence mid course changes might have to be made while release of contingency with due approval process being followed as per corporate policy. Saving Changes...
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