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What is contingencu fund?

Updated: 9/17/2023
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9y ago

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A contingency fund is an amount of money placed aside to be used when a certain event (the contingency) occurs. A common example is a contingency fund for risks in a project. If the risk occurs, the money is used to mitigate the risk.

Without a contingency fund, any risks coming to pass would become uncovered expenses.

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