Cost Risk Management

Cost risk management involves identifying, assessing, and mitigating potential financial uncertainties that could increase project or operational costs. It aims to proactively address factors like price fluctuations, unexpected expenses, or resource shortages to avoid budget overruns. By planning for these risks early, organizations can allocate appropriate contingency funds, make informed decisions, and ensure projects stay within budget. Essentially, it’s about managing the uncertainty of costs to protect financial stability and ensure successful completion without unexpected financial burdens.