Certified Professional Contract Manager (CPCM) 2026 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 515

What does the term contingency refer to in project management?

An issue that is guaranteed to happen

A risk or potential event that might cause problems

In project management, the term contingency refers to a risk or potential event that might cause problems if it occurs. This concept emphasizes the uncertainty inherent in projects, where unforeseen events can impact timelines, budgets, and overall project success. By identifying contingencies, project managers can develop strategies to mitigate potential risks, allocate resources effectively, and create contingency plans that ensure the project can adapt to changes. This proactive approach is crucial for maintaining control over project management processes and achieving desired outcomes.

In contrast, recognizing that not all outcomes are certain allows teams to prepare for various scenarios, reinforcing the importance of contingency planning within the broader risk management framework.

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A contract specification that must be fulfilled

A method of organizing project resources

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