Risk management in cost planning

Risk management in cost planning involves identifying potential uncertainties or issues that could increase project costs, such as delays or price changes. It includes analyzing these risks, assessing their likelihood and impact, and then developing strategies to mitigate or handle them. By doing so, project managers can better control the budget, avoid surprises, and ensure the project is completed within its financial limits. Essentially, it’s about being proactive and prepared for possible financial risks to keep the project on track financially.