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You've set aside a certain amount of your project funds to cover key, identified risks. What specifically did you use to determine how much should go into this fund?

go into this fund?

a. Bottom-up estimate

b. Reserve analysis

c. Variance analysis

d. Upside-risk estimate

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Question added by Muhammad Farooq , QA-QC MANAGER , AL Bawani contracting co.
Date Posted: 2016/05/18
Muhammad Farooq
by Muhammad Farooq , QA-QC MANAGER , AL Bawani contracting co.

 

B – The reserve analysis is explicitly used for determining risk contingency reserve amounts.

 

 

 

 

Khatija Khatija
by Khatija Khatija , Senior Financial Accountant , Anglogold Ashanti

Budget Amount is determined by similar projects incurred. Increases in budget are determined by Inflation rate. Also research is done to determine "new costs" associated with the project. These costs are then included in the budget.

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