According to the PMI Risk Management Professional (PMI-RMP)® Handbook1, one of the domains of

the PMI-RMP exam is Risk Monitoring and Reporting, which involves tracking identified risks,

monitoring residual risks, identifying new risks, executing risk response plans, and evaluating risk

process effectiveness throughout the project1. The risk manager of the related project should have

reformed the risk monitoring and closing process properly to ensure that the contingency budget is

only used for the intended risks and not for other purposes. The risk manager should have also

communicated the status and outcomes of the risk activities to the relevant stakeholders, such as the

functional manager and the CEO, to avoid any confusion or conflict over the budget

allocation1. Reference: 1: PMI Risk Management Professional (PMI-RMP)® Handbook, page 6.

The risk manager should have ensured a more accurate project work plan and budget to prevent the

functional manager from requesting to use the project's contingency budget. A well-planned budget

would have avoided the shortage in the functional manager's department budget.