Reserve Analysis

Reserve Analysis is a technique used in project management to allocate extra budget or time for addressing risks. It involves estimating contingency reserves for identified risks (known unknowns) and management reserves for unforeseen risks (unknown unknowns). This ensures the project can handle uncertainties without major disruptions, helping maintain project stability and control. 

• Known Unknowns: Contingency reserves cover identified risks (known unknowns) with potential impact but uncertain timing or magnitude.
• Unknown Unknowns: Management reserves address unforeseen risks (unknown unknowns) that couldn't be predicted.
• Used to maintain project stability and handle uncertainties effectively.