PMI Risk Management Professional Practice Exam

In risk management, what does the term 'contingency plan' refer to?

1. Plans for regular project tasks.

2. Strategies to address identified risks.

3. The primary project schedule.

4. Documentation of project stakeholders.

The correct answer is: Strategies to address identified risks.

The term 'contingency plan' is specifically related to strategies developed to address identified risks within a project. These plans involve predefined responses that can be enacted if certain risk events occur, ensuring that the project can continue to progress despite challenges. By anticipating potential issues and outlining steps to mitigate their impact, contingency plans help project managers and teams navigate uncertainty more effectively. In the context of risk management, having a contingency plan allows for a proactive approach, enabling the project team to respond quickly and effectively when risks materialize. This reduces the likelihood of negative impacts on project objectives, timelines, and budgets. The other options focus on different aspects of project management that are not specifically related to addressing risks. For instance, plans for regular project tasks pertain to day-to-day management activities rather than risk response. The primary project schedule is concerned with timelines and deliverables, while documentation of project stakeholders is about stakeholder management and communication rather than risk planning.