Today we are going to discuss the contingency plan and the fallback plan. This topic is very important from a PMP and PMI-RMP exam point of view. You may see a few questions testing your knowledge on this topic.
So understand this topic well.
Contingency and fallback plans are developed to manage identified risks. Since both plans are used to manage risks, you may wonder which plan you will use if any risk occurs.
A risk can be one of two types: identified risk, unidentified risk. Identified risks can be further divided into many categories, such as: primary risk, secondary risk, residual risk, etc. Now you may think that if any of these risks occur, which plan will you use to contain the risk?
This complicates the situation.
You have two kinds of reserves to manage the reserve: contingency reserve and management reserve. Now the question comes to mind which reserve will you use to implement the contingency plan and fallback plan?