PMI Risk Management Professional Practice Exam

What defines a “contingent risk” in project management?

1. A risk that is likely to occur

2. A risk that is uncertain and may occur under specific conditions

3. A risk that has been resolved

4. A risk that has been completely avoided

The correct answer is: A risk that is uncertain and may occur under specific conditions

A contingent risk in project management refers to a risk that may materialize only under certain conditions or circumstances. This definition emphasizes the uncertainty and conditional nature of such risks, distinguishing them from more straightforward risks that are considered likely to occur. Contingent risks require a thoughtful approach to risk management because they necessitate monitoring the conditions that could trigger them and preparing appropriate responses if those conditions emerge. This makes understanding these types of risks essential for effective project planning and execution, as it helps project managers develop strategies to mitigate potential impacts without assuming that they will automatically occur. For example, a contingent risk might involve a project's reliance on weather conditions—such as the risk of delays due to heavy rain—that could impact progress only if the weather situation aligns with specific forecasts. Being aware of such risks allows a project team to develop contingency plans that can be activated if the triggering conditions are met.