Stakeholder deliverable reviews will start soon and additional work is expected to resolve any issues or required adjustments. Budget overruns during…

The project manager should reassess the risks and analyze the reserve to determine if any

adjustments can be made to accommodate the expected additional work. This will help in identifying

potential budget-saving measures and making informed decisions on how to proceed.

According to the PMI Risk Management Professional (PMI-RMP) Reference Materials, risk

reassessment is the process of reanalyzing existing project risks and identifying new risks throughout

the project life cycle1. Reserve analysis is the process of estimating the amount of contingency

reserve and management reserve needed to account for the uncertainty and variability of the

project2. In this case, the project manager should conduct a risk reassessment and reserve analysis

as the next step, because the budget overruns during execution have changed the risk profile of the

project and reduced the available funds to handle future risks. By conducting a risk reassessment, the

project manager can update the risk register and the risk response plan with the current status of the

project risks and the effectiveness of the risk responses. By conducting a reserve analysis, the project

manager can determine if the remaining contingency reserve and management reserve are sufficient

to cover the potential impact of the project risks, and request additional funds if needed.

Reference: 1: PMI, A Guide to the Project Management Body of Knowledge (PMBOK® Guide), Sixth

Edition, 2017, p. 442 2: PMI, A Guide to the Project Management Body of Knowledge (PMBOK®

Guide), Sixth Edition, 2017, p. 215