Reserve Analysis is a method used to evaluate the amount of risk on the project and the amount of schedule and budget reserve to determine whether the reserve is sufficient for the remaining risk.
It involves comparing current reserve levels against updated risk exposure to assess if additional reserves are needed or if existing ones can be released.
Key Characteristics
- Quantifies Remaining Risk – Evaluates current threats and their potential impact
- Validates Sufficiency – Determines whether time and cost buffers are adequate
- Supports Forecasting – Informs future projections of reserve usage
- Dynamic and Iterative – Conducted periodically as risks evolve
Example Scenarios
- Reviewing reserve adequacy mid-project after several risk events have occurred
- Adjusting schedule reserves based on updated risk assessments during execution
- Reallocating unused contingency reserves after scope stabilization
Role in Risk and Performance Management
- Enhances Control – Keeps cost and schedule performance aligned with risk levels
- Supports Decision-Making – Guides reserve adjustments through data-driven analysis
- Improves Responsiveness – Enables proactive reserve planning based on evolving conditions
- Increases Stakeholder Confidence – Demonstrates structured approach to uncertainty management
See also: Reserve, Contingency Reserve, Management Reserve, Risk Management Plan, Cost Forecasts.