What kind of reserves are applied to the total project to cover unforeseen risks?

The correct answer is management reserves. Management reserves are specifically set aside to cover unforeseen risks and uncertainties that may arise during the course of a project. These reserves are not allocated to any specific known risks but are rather a buffer for unexpected events that were not considered in the planning phases.

Contingency reserves, on the other hand, are defined amounts set aside for specific identified risks that have a known probability of occurring. Budget reserves are layers of cost that may be added to the budget for any other planned spending needs. Operational reserves typically refer to funds held to support daily business operations rather than specific project uncertainties. Hence, in project management, management reserves serve as a safeguard for broader uncertainties that fall outside the identified risk management framework.