process - Part 5

Your Guide to Project Management Best Practices

Tagged: process

Project Cost Management – Definition, Process and Software

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How to Estimate Project Costs and Prevent Overspending

What is project cost management? It is a suit of activities for estimating, allocating, and controlling costs within the project. Project cost management allows determining and approving budget for the project and controlling spending. For example, in construction project cost management it is vital to estimate cost of building materials, equipment, salary of workers. In IT project cost management it is critical to estimate cost of software development, salary of IT staff and developers. Effective project cost management allows each project to be specific and unique because that project entails costs and requires specific funding. However, no matter whether you lead a software development project (IT project cost management) or construction project (construction project cost management), you should consider project cost management as a process that consists of the three key steps.

The plan and process of risk management

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Defining Risk Management Plan and Process Lifecycle

The gurus of project management point out that a sound risk management plan can decrease the rate of project failure by as much as 60-70 percent. Such a plan in combination with a well-defined risk management process will help the project manager and senior stakeholders to identify and solve most potential problems and also anticipate and respond to changes occurring throughout the project lifecycle. Planning for risk management appears to be critical to project success, allowing the team to prevent loss and avoid jerk reactions.

managing project risks

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Managing project risks – Learning project risk definition and undertaking risk management process

If you start reading project management literature, you may find there various definitions of project risk. The variety of project risk definitions is caused by the fact that each kind of project (e.g. IT projects and construction projects) may have specific kinds of risks that influence project results. However, the nature of project risks is the same for every kind of project, so there should be common definition of risks. In this article the following project risk definition is used: A project risk refers to a combination of probabilities that cause an event’s appearance and the outcomes that the event produces. Project risks can be identified, estimated, assessed and controlled within project risk management activities.