The importance attributed to costs, deadlines and risk management can vary greatly depending on the nature of the project and the context in which it is to be carried out. The forecasting of costs, deadlines and risks is mainly carried out at the beginning of the project. However, forecasting activities continue to take place throughout the project’s execution, with the aim of making adjustments to the trajectory when necessary.
A project and a budget are interrelated. Thus, it is important to establish a provisional budget determined by adding up all the incomes (such as return on investment of the project or public grants) and costs incurred in carrying out the project, both material and human costs. See some examples:
There are two main causes of budget overruns: poor cost management, or an initial estimate that could not be kept. It is, therefore, essential to constantly update the actual budget throughout the life of the project to compare it to the provisional budget, as to have clear visibility of the financial health of the budget.
There are no zero risks in project management, therefore, to face the related risks, you can apply the following tips:
A contingency plan is the definition of action steps in case an identified risk event occurs. Within the framework of project management, a contingency plan is a basic component of the project risk management plan. A contingency plan is essentially a “Plan B.” It’s a backup plan in place for when things go differently than expected.