Thanks for your quick response
In PMBook 188.8.131.52 reserve analysis the book reefer to the following
((When the amount of management reserves is used to fund unforeseen work, the amount of management reserve used is added to the cost baseline, thus requiring an approved change to the cost baseline.))
this was noted in page 206. could you please clarify?
Baseline cost should not be changed unless you rebaseline the entire program. The cost would come out of management reserve or other contingency spending and be reflected there. Remember that the baseline is your reference point for the whole program, don’t change it, it tells you how good or bad you’re doing on the program.
What I meant in my question that should the cost of workaround be added to the project cost baseline ( adjust the BAC to include any workaround cost through change management ) or there is no need to update the baseline as it is (BAC)not contained any management reserves expenditures
Normally the change request is submitted before the workaround is implemented. Sometimes management would accept the consequences of the risk over the cost of the workaround. If it was an identity risk and the mitigation was identified in the risk plan then you could apply the workaround without a approved request. Either way I would then write it up in the Lessons Learned.
Once the workaround was applied for unidentified risk, should we submit a change request after implementation the workaround to include the cost incurred to the baseline? or just record it in the Lessons learned as it was done through the management reserve?