IFO4
Loading...A budgeted amount set aside to cover known risks whose magnitude or timing cannot be fully predicted, distinct from management reserve which addresses unknown unknowns. Contingency reserve is the federation-recognised mechanism for absorbing identified-but-unscoped risk exposure within the approved budget envelope. The federation requires contingency reserves to be sized through a documented risk methodology, drawn down through a documented approval process, and reported separately from operating budget under UFMS-001:4.1. Unused reserve is released at period close.
A construction of project management practice; the PMI Project Management Body of Knowledge popularised the modern usage in the 1980s.
Federation members size contingency reserve through documented risk methodology. Drawdowns require approval per the published process. Reserve usage and release are reported in the quarterly budget package under MEV-Annex:5.1 with full traceability to risk events.
@misc{ifo4_glossary_contingency_reserve,
title = {{Contingency Reserve}},
author = {{IFO4 Federation Editorial Board}},
howpublished = {{IFO4 Federation Glossary, slug \texttt{contingency-reserve}}},
year = {2026},
url = {https://ifo4.org/glossary/contingency-reserve},
note = {Category: Budget & Forecast; key: ContingencyReserve}
}Federation members and accredited practitioners may challenge any entry under TGS-002:1.7. Filed challenges are routed to the editorial board, triaged into the revision register, and resolved in writing on the public docket. The slug remains stable through any revision.