Project Management Professional (PMP) Exam Practice – Question1585

A general contingency is used for______________


A.
Risks that are identified at the outset of the project
B. Risks that are not identified at the outset of the project but are known before they occur
C. Risks that cannot be known before they occur because they are external risks
D. Any risks that cannot be known before they occur

Correct Answer: D

Explanation:

Explanation:
There is a category of risks that is sometimes called unknown-unknowns, meaning that the risk is not knowable and, therefore, the probability of the risk is also not knowable. Your lead technical advisor becoming seriously ill, your offices being ransacked by
persons engaged in industrial espionage, or one of your subcontractors winning the lottery and running off to the Cayman Islands are all examples of risks that are not known before they occur. However, such risks must be expected and a general contingency
can be set aside to address the impact they leave in their wake.