Risk

What is Management Reserve?

Management reserve is budget or schedule held for the truly unforeseen — the "unknown unknowns" no risk workshop identified. It sits outside the cost baseline, and accessing it requires management approval, usually via formal change.

That placement is the point: reserves for surprises shouldn't be quietly absorbable into routine overruns. When an exam scenario features an event nobody could have identified in advance, management reserve is the funding answer.

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