Knowee
Questions
Features
Study Tools

Multiple Choice QuestionWhat is the purpose of a contingency fund in executing a response to an opportunity (positive risk) occurring?Multiple choice question.To take advantage of opportunitiesTo eliminate project risksNone, it is not built into the original plan

Question

Multiple Choice QuestionWhat is the purpose of a contingency fund in executing a response to an opportunity (positive risk) occurring?Multiple choice question.To take advantage of opportunitiesTo eliminate project risksNone, it is not built into the original plan

🧐 Not the exact question you are looking for?Go ask a question

Solution

The purpose of a contingency fund in executing a response to an opportunity (positive risk) occurring is "To take advantage of opportunities".

Here's why:

  1. A contingency fund is a pool of resources set aside to cover unforeseen costs that might arise during the execution of a project.

  2. When an opportunity (positive risk) arises, it often requires additional resources to take advantage of it. This could be in the form of extra time, manpower, or financial resources.

  3. By having a contingency fund, the project team can quickly and effectively respond to the opportunity without having to seek additional funding or resources, which could delay the project and potentially cause the opportunity to be missed.

  4. Therefore, the contingency fund serves to take advantage of opportunities that arise during the project, rather than to eliminate project risks or not being built into the original plan.

This problem has been solved

Similar Questions

Multiple Choice QuestionWhat best describes a contingency fund for a project?Multiple choice question.A reserve to manage known and unknown negative project risk.A reserve to manage known and unknown positive project risks.A reserve to manage all known and unknown project risks.This is a form of padding used in estimates.

Multiple Choice QuestionWhat type of contingency is typically required to manage a "schedule risk," i.e., finishing a project late?Multiple choice question.Inflation factor adjustmentsContingency funds, i.e. cashMitigation of risk likelihoodTermination of project

Multiple Choice QuestionThe sequence of steps in managing opportunities is the same as negative risk, but which step utilizes a different approach?Multiple choice question.Risk Identification.Risk Assessment.Risk Response Development.

Multiple Choice QuestionWhich statement best defines the methodology for accepting project opportunities?Multiple choice question.Attempt to ensure that an opportunity is realized/happens through applied resources or other strategies.Allocate some or all ownership to another party best able to insure the event happens.The opposite of mitigation, i.e., take actions to increase the probability and/or impact of a positive occurrence.When the event occurs, implement increased application of resources, but don't expend any pursuing it.

Multiple Select QuestionSelect all that applyWhich are potential impacts given a project with risk responses but no contingency plan?Multiple select question.Incorrect actions taken.Panic.Delayed corrective action.Reduced costs through saved time.Need help? Review these concept resource

1/3

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.