One of the key roles a Project Risk Manager plays is helping the team determine how much exposure the project has from the ‘known risks'. This helps them to calculate the amount of cost contingency the project should be retaining.
Risk and contingency management is one piece of the puzzle when managing a complex project. One of the first steps towards success is assessing the risks associated with a project—it’s vital to identify and track, the potential pitfalls prior to the project start date, as well as throughout the project schedule. Projects and plans evolve, thus project managers must effectively account for margin and change.