Contingency and Managment Reserves
Just want to make sure if my thought process is correct hence this clarification. Please correct me if any of my below statements are incorrect.
Rita Mulcahy states that Contingency reserves account for Known Unknown. According to me risks which fall under Active Acceptance and Passive Acceptance category are Know Unknown risk. So in this case will it be right to say that these contingency reserves apply for both Active acceptance strategy and Passive acceptance strategy.
Also for completely Unknown risks, the strategy to deal with these risks is creating Workaround when the risks occur. As Management reserves are accounted for Unknown risks, so will it be right to say that Management reserves can be used for these workarounds which is created to deal with unknown risks.