You are the project manager of the NNQ Project for your company and are working with your project team to define contingency plans for the risks within your project. Mary, one of your project team members, asks what a contingency plan is. Which of the following statements best defines what a contingency response is?
A.
Quantified risks should always have contingency responses.
B.
Some responses have a cost and a time or to consider for each risk event.
C.
Some responses are designed for use only if certain events occur.
D.
Some responses must counteract pending risk events.
Explanation:
A contingency response is only used when certain events occur. A contingency response defines the conditions and triggers to implement the contingency plan.
The contingency risk response strategy is also known as the contingency plan. Contingency risk response strategy is involved with the improvement of different courses of actions that include changes in schedule, resources, or contract. Contingency planning comes into action when the risk events happen in the project. This means that one should prepare and plan the contingencies in advance before the threats occur. After the risks have been acknowledged and quantified, contingency plans should be planned, developed, and kept organized. Contingency allowances or the reserves are the general contingency responses. Answer option D is incorrect. Counteracting pending risk events is somewhat accurate, but it is not best answer for Mary’s Question
Answer option B is incorrect. While this statement is generally true, it does not define what a contingency response actually is.
Answer option A is incorrect. This statement is not valid as not all quantified risks must have contingency responses.
Reference: "Project Management Body of Knowledge (PMBOK Guide), Fourth Edition"
Correct answer is C