Ever had that moment when everything is going smoothly… and then suddenly, BAM! An unexpected problem hits out of nowhere? That’s where Management Reserve comes in.
Unlike contingency reserves (which are set aside for known risks), management reserves are a hidden buffer controlled by senior management for unknown risks—things you didn’t see coming.
How It Works:
Let’s say you’re managing a new product launch, and out of the blue, a sudden regulatory change requires you to redo a major part of your project. You didn’t plan for this, but if your company has a management reserve, you might have extra funds or resources to handle the situation.
💡 Think of it as your “break glass in case of emergency” fund!
