CAPM (Certified Associate in Project Management) Practice Exam

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What is a contingency plan?

A detailed step-by-step plan for the entire project
A response to a risk that might happen
A backup plan if the project fails
A response to a risk event that will be implemented only if the risk event occurs

The correct answer is: A response to a risk event that will be implemented only if the risk event occurs

A contingency plan is a specific response prepared to address a risk event if it materializes during the project. It is not a detailed step-by-step plan for the entire project (choice A), as it is focused on managing specific risks. Additionally, while a contingency plan can help manage project risks, it is not an overall backup plan in case the entire project fails (choice C). The correct answer, option D, accurately describes a contingency plan as a response that will be implemented only if the risk event actually occurs, making it an important component of risk management within a project.