Identify the missing words in the following sentence. A risk budget is a sum of money included in the [ ? ] and set aside to fund specific management responses to a project's threats and opportunities.
Identify the missing words in the following sentence. A risk budget is a sum of money included in the [ ? ] and set aside to fund specific management responses to a project's threats and opportunities.
A risk budget is a sum of money included in the project budget and set aside to fund specific management responses to a project's threats and opportunities. This is to ensure that there is allocated funding for addressing potential risks, whether they turn into actual issues or require preventative measures.
A risk budget, if used, is a sum of money included within the project budget and set aside to fund specific management responses to the project’s threats and opportunities (for example, to cover the costs of any fallback plans should they need to be implemented). In order to arrive at a risk budget for the project, a financial approach to risk management is needed.