The Most Common Active Acceptance Strategy Is Contingency Reserve
PMBOK v8 Definition
Accept is a risk response strategy that acknowledges the existence of a risk (threat or opportunity) but takes no proactive action beyond monitoring. Acceptance can be either active or passive. The most common active acceptance strategy is to establish a contingency reserve, including amounts of time, money, or resources to handle the threat if it occurs—or to take advantage of the opportunity if it occurs. Passive acceptance involves no proactive action apart from periodic review of the risk to ensure it does not change significantly.
This concept applies to both threats and opportunities within the Project Risk Management Knowledge Area, specifically in the Plan Risk Responses process.
Why It Matters for the Exam
The PMI exam frequently tests the distinction between active acceptance and passive acceptance, as well as the difference between contingency reserve (for known risks) and management reserve (for unknown risks). Expect scenario-based questions where you must identify the correct risk response strategy based on whether a reserve is established or not.
Key Points to Remember (for the exam)
- Active Acceptance: Establishes a contingency reserve (time, money, or resources) proactively, ready to be used if the risk occurs.
- Passive Acceptance: No proactive action; only periodic review of the risk to detect changes.
- Contingency Reserve: Used for known risks (identified and accepted). Part of the cost baseline or schedule baseline.
- Management Reserve: Used for unknown risks (unidentified). Not part of the baseline; requires change control.
- Appropriate for: Low-priority risks, or when it is not possible or cost-effective to address the risk in any other way.
- Dual Application: Applies identically to both threats (negative risks) and opportunities (positive risks).
- Common Confusion: Confusing contingency reserve with management reserve → Contingency reserve is for accepted known risks; management reserve is for unknown risks.
Typical PMI Exam Example
A project team identifies a risk that a key supplier may deliver materials one week late. The probability is low, and the impact is moderate. The project manager decides to allocate an extra $5,000 in the budget to cover potential expedited shipping costs if the delay occurs, but takes no other action. This is an example of active acceptance for a threat.
PMI Exam Traps
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Trap: Thinking acceptance means doing nothing.
- Reality: Active acceptance requires establishing a contingency reserve. Only passive acceptance means doing nothing proactively.
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Trap: Confusing contingency reserve with management reserve.
- Reality: Contingency reserve is for known risks (identified and accepted). Management reserve is for unknown risks (not identified).
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Trap: Applying acceptance only to threats.
- Reality: Acceptance applies to both threats and opportunities. The same active acceptance strategy (contingency reserve) is used for opportunities to take advantage if they occur.
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Trap: Believing acceptance is always the last resort.
- Reality: Acceptance is appropriate for low-priority risks and when other strategies are not possible or cost-effective.
Important PMI Connections
| Related Concept | Relationship Type | Exam Attention Point |
|---|---|---|
| Plan Risk Responses | Process where acceptance is selected | Exam tests which risk response strategy is chosen in a given scenario |
| Contingency Reserve | Direct output of active acceptance | Must be included in the cost baseline or schedule baseline |
| Management Reserve | Opposite concept (unknown risks) | Exam tests the difference: known vs. unknown risks |
| Risk Register | Document where acceptance decisions are recorded | Updates include the chosen response strategy and contingency reserve amount |
| Overall Project Risk | Acceptance can apply at project level | Active acceptance for overall risk uses an overall contingency reserve |
Quick Review Questions
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A project manager identifies a low-probability threat and sets aside $10,000 in the budget specifically to cover potential costs if the threat occurs. What risk response strategy is being used?
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What is the difference between contingency reserve and management reserve in terms of risk type?
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A project team decides to monitor an opportunity quarterly but takes no action unless the opportunity materializes. Is this active or passive acceptance?
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For which types of risks (threats, opportunities, or both) is the acceptance strategy applicable?
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When is acceptance the most appropriate risk response strategy according to PMBOK v8?
PMBOK v8 Reference
Section 11.5.2.3 - "Strategies for Opportunities" and Section 11.5.2.4 - "Strategies for Threats" (Accept strategy details)
The exact passage from PMBOK v8 states: "The most common active acceptance strategy is to establish a contingency reserve, including amounts of time, money, or resources to take advantage of the opportunity if it occurs" (for opportunities) and "to handle the threat if it occurs" (for threats).