Using Risk Management to Improve Project Budget Estimation
By Abdulla Alkuwaiti
Producing a good estimate for your project budget is not an easy task. Chances are you spent a great deal of time identifying required resources and estimating their costs, however, there can be mistakes in your calculations. Also you might forget to include some required resources or tasks. The story doesn’t end there because your project might encounter unidentified risks that may require additional financial resources.
Producing a project plan is not a linear process and is subject to many changes. You will often need to go back and forth to add/delete tasks or make changes to your time and quality requirements which may affect your budget. Therefore, you need to keep track of all your changes which is not an easy task. Conducting Risk Management at the end of your planning phase will help you to pull together the different bits and pieces of your project and help you come with a more accurate budget. Read the Complete Article