In simple terms cost and risk go hand in hand. During identify risk process you have to look at cost management process to understand the budget allocations to the risk responses. When performing determine budget, risks shoud be taken into consideration and contingency and management reserves are allocated.
Hope this clarifies your doubt.
Hi Manoj: Extract from Rita's:
Knowing the estimates of time and cost helps determine the risk of the project not meeting the schedule and cost objectives. The final budget and schedule cannot be dtermined without including risk reserves.
Plus ...Cost management plan has control threshold I.e. the amount of variation or deviation allowed for cost. If your risk poses a threat above that control threshold then it has to be addressed accordingly
same goes for the need for schedule management plan
MANOJ RAMRAOJI ...
Fri, 12/14/2012 - 14:36
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We link for Mock questions
Kindly suggest web link for Mock questions Knowledge area wise specifically
composem@rediffmail.com
mkar
Fri, 12/14/2012 - 17:18
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Cost vs Risk
In simple terms cost and risk go hand in hand. During identify risk process you have to look at cost management process to understand the budget allocations to the risk responses. When performing determine budget, risks shoud be taken into consideration and contingency and management reserves are allocated.
Hope this clarifies your doubt.
Hi Manoj: Extract from Rita's:
Knowing the estimates of time and cost helps determine the risk of the project not meeting the schedule and cost objectives. The final budget and schedule cannot be dtermined without including risk reserves.
miners
Sun, 12/16/2012 - 13:27
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Agree with above plus...
Here's my understanding
Plus ...Cost management plan has control threshold I.e. the amount of variation or deviation allowed for cost. If your risk poses a threat above that control threshold then it has to be addressed accordingly
same goes for the need for schedule management plan
hope this helps!