Thanks Eric. This is helpful.
Here is an example, if a machine breaks down in mid of a project and we have anticipated this risk and had a risk response of buying or leasing another machine, then we don't need a change request. Because, we already had a risk response in place and would have added a contingency reserve in cost baseline for this.
Now, let's assume that the price of equipment changes and its much higher than anticipated due to sudden demand or scarce availability. So in this case, we will either need to move management reserves to cost baseline or request for more budget (if management reserve is not adequate), which is a change in cost baseline, thus will require a change request.
Do you think I understood it correctly? Or I still have a gap?
Thank you!
P.S. Thanks for your encouragement, I am trying my best to fill the gaps and making sure I am not missing anything. Exam in less than 10 days. So keeping fingers crossed and hoping for the best!