There is $$150,000$ allocated for management reserves. One of the stakeholders is a newly hired vice president who comes form a small company where project management was not formalized, so he is unfamiliar with this term. The project manager explains the specific reason for which management reserves are created. Of the following, which is the reason?

Group of answer choices

Project risk events you know can occur

Project risk events that do occur with a cumulative cost greater than the amount set aside in management reserves

Project risk events that do occur with a cumulative cost greater than the amount set aside in contingency reserves

Project risk events that cannot logically be forecasted