What is a contingency?

What is a contingency?

• A. A definite outcome
• B. A future event or circumstance that is possible but cannot be predicted with certainty
• C. A planned training activity
• D. A cost estimate

Answer: (B)

A contingency is a future event or circumstance that is possible but cannot be predicted with certainty. It represents uncertainty that could impact the project, so planning includes ways to respond if it occurs and often reserving some resources to cover it. For example, a key supplier might experience delays, which is possible but not guaranteed, so you prepare a contingency plan and budget to handle that risk. This differs from a definite outcome (which is certain), a planned training activity (a scheduled action), or a cost estimate (a forecast of costs rather than an uncertain event).

A contingency is a future event or circumstance that is possible but cannot be predicted with certainty. It represents uncertainty that could impact the project, so planning includes ways to respond if it occurs and often reserving some resources to cover it. For example, a key supplier might experience delays, which is possible but not guaranteed, so you prepare a contingency plan and budget to handle that risk. This differs from a definite outcome (which is certain), a planned training activity (a scheduled action), or a cost estimate (a forecast of costs rather than an uncertain event).