There is $150,000 allocated for management reserves. One of the stakeholders is a newly hired vice president who comes from 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, what is the reason?

a. Project risk events you know can occur

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

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

d. Project risk events that cannot logically be forecasted