A blog that looks at all aspects of project and program finances from budgets, estimating and accounting to getting a pay rise and managing contracts.
Written by Elizabeth Harrin from RebelsGuideToPM.com.
A common project budget problem here is when you didn’t budget anything for project risk management. Then a risk pops up and you’d like to do something about it and can’t because there’s no money allocated for risk mitigation or to exploit a positive risk.
It’s too late to go back and ask for a risk budget now… or is it? You might find your sponsor open to that kind of conversation, and it certainly doesn’t hurt to ask. If you don’t have additional money available then you have to adjust your activities accordingly. Perhaps your project board could accept a higher level of risk for that element, or they would be prepared to compromise on something else. Put together a proposal that explains the risks, the costs and the benefits along with some options so that they have choices.
Financial Management Specialist | US Peace CorpsYaounde, Centre, Cameroon
Thanks Elizabeth,
....A common project budget problem here is when you didn’t budget anything for project risk management. Then a risk pops up and you’d like to do something about it and can’t because there’s no money allocated for risk mitigation or to exploit a positive risk....
This is dimension is worst than budgeting for the risk and realizing that budget wouldn't meet up...
Darren PaladinoEngagement Director| SalesforceDenver, Co, United States
Thank you Elizabeth for this piece on your approach to risk. Tracking any budget disconnect as an issue is a significant take away for me.
Mustafa FakhouriEcommerce, Social Media & Management Analysis| Renewable Concepts for Projects Support Co. - TajdeedAl Sharqeyah, Dammam, Dammam, Saudi Arabia
Thanks for sharing, great post.
Mustafa FakhouriEcommerce, Social Media & Management Analysis| Renewable Concepts for Projects Support Co. - TajdeedAl Sharqeyah, Dammam, Dammam, Saudi Arabia
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