Apr 04, 2018 1:55 PM
Replying to Kiron Bondale
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Ahmed -
1 - two choices: if other negative risks which could have been realized by this time haven't been realized and are unlikely to be realized and you haven't returned the contingency reserves for them, you could use that to offset the higher cost of the realized risk. If that isn't an option, you would be seeking approval to dip into management reserve OR would look at a change request to approve using remaining project budget to cover the offset in which case you might need to reduce scope or take some other type of action which will require official approval through your change control process.
2 - depends on your organization's policies and your sponsor's views. In some companies, that amount has to be returned to the funding body. In others, it remains with the project manager to cover realized risks with higher than expected cost impacts or even realized risks which were not identified. Finally (and possibly worst choice) is the sponsor views it as his/her "slush fund" to fund scope increases...
3 - Two words if you will do this: change control. Other than that, you are looking at using management reserves or getting into a negative cost variance...
Kiron
