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1. How can we as managers position our company to be able to primarily gain from randomness and chaos?

2. Project financial management process includes project control, costing, budgeting, and forecasting. Other important aspect of project financial management includes contracting, billing and performance reporting. Implementation of organization projects has associated risk, which requires assessment of emerging risks. Some of the important part of total cost of risk includes lifetime operational cost, contractor cost, maintenance cost and personnel cost. The identified cost factors play an important role in the process of attainment of project objectives. For example, budgeting for maintenance and lifetime operational cost ensures organizations attain adequate productivity from project implementation. Risk management in financial project management involves processes, which include risk assessment and mitigation strategy (Jordan, 2013). Risk assessment process focuses on identification of possible risk and evaluation of the effects on project implementation.

Cost factors incurred in risk management determines of the level of project success. For example, use of risk avoidance as part of mitigation strategy would require an organization to select a contractor with a proven experience in industry as compared starter contractors. This will result in operational cost factor reduction during project lifetime. The cost of risk sharing will result in considerable reduction in overall project implementation cost , for example, multinational organization tend to form partnership with local companies in countries of operation for purposes of reducing legal ,regulatory and potential political risk (Hillson, 2011). The cost of risk transfer is another essential aspect of risk management in financial project planning. Risk transfer will involve acquiring insurance cover critical project infrastructure component, for example, heavy machinery for construction companies. Effective risk management plan will enhance support project financial by ensuring appropriate allocation of resources. Risk management plan also helps in financial control, which is essential in determination of project variance."

3. How some short-term strategies that seemed ideal at the time of implementation later transformed into major issue for the projects. What are your thoughts on the long-term consequences of cost-saving strategies?
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