Contingency Vs Management Reserve If you find Contingency vs Management Reserve confusing during exams, you’re not alone. Let’s simplify this tricky topic with real-life finance examples so it finally makes sense. Even in our personal life we have our own ways of handling finances and they are close to project management methods. For instance, apart from our daily expense we still have a buffer amount (cash in hand or bank savings) which is equivalent to contingency reserve . we can still use this for vehicle maintenance, festival expenses and minor emergencies. In spite of having this buffer amount, we still go for insurance for unknown medical expenses which is equivalent to a management reserve. If you need to use buffer amount it will be in your control which is similar to Contingency Reserve . If you need to use the amount for unforeseen expenses from insurance you have to follow a process and is controlled by different team which is equiva...