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11 Examples of Budget Risk

 , updated on July 22, 2023
Budget risk is the potential for the estimates or assumptions built into a budget to turn out to be inaccurate. All budgets are based on future looking forecasts that typically involve some degree of uncertainty. This uncertainty can be managed as a risk. The following are common examples of budget risks.

Cost Overrun

The potential that you will run overbudget.

Revenue Risk

The risk that revenue will fall short resulting in problems funding your budget.

Estimate Accuracy

The risk that cost estimates are inaccurate.

Exchange Rate Risk

Exchange rate volatility that increases your costs.

Schedule Risk

Delays to the schedule typical increase the costs of a project or initiative.

Unplanned Costs

Unanticipated costs such as fines.

Scope Creep

A tendency for the scope and cost of projects to increase due to poor change control or poorly defined requirements.

Price Risk

An increase in the price of inputs such as consulting or IT services.

Inflation Risk

A broad-based increase in prices.

Partner Risk

Poor performance of a partner that results in increased cost.

Resource Risk

The risk that resource issues such as employee turnover will result in missed deadlines and increased costs.
Overview: Budget Risk
The potential for assumptions and estimates built into a budget to be inaccurate resulting in budget control issues such as cost overruns.
Risk Treatments
Related Concepts
Next: Schedule Risk


This is the complete list of articles we have written about risks.
AI Risk
Risk Avoidance
Brand Risk
Budget Risk
Business Risks
Change Risk
Compliance Risk
Concentration Risk
Cost Risk
Country Risk
Credit Risk
Demand Risk
Dread Risk
Economic Risk
Exchange Rates
Existential Risk
External Risk
Financial Risk
Force Majeure
Good Risk
Human Error
Risk Identification
Infinite Risk
Inflation Risk
Inherent Risk
Interest Rates
Internal Risks
Investing Risk
Legal Risk
Liquidity Risk
Model Risk
Moment Of Risk
Natural Disasters
Negative Risk
Operations Risk
Passive Risk
Personal Risk
Political Risk
Process Risk
Procurement Risk
Product Risk
Project Risk
Pure Risk
Quality Risk
Recession Risk
Risk Mitigation
Refinancing Risk
Regulatory Risk
Reputational Risk
Residual Risk
Resource Risk
Revenue Risk
Risk Appetite
Risk Aversion
Risk Examples
Risk Management
Risk Management Process
Risk Matrix
Risk Meaning
Risk Measurement
Risk Taking
Risk Tolerance
Risk Triggers
Risk vs Issue
Risk vs Opportunity
Risk vs Uncertainty
Risk-Reward Ratio
Seasonal Risk
Secondary Risk
Security Risk
Settlement Risk
Risk Sharing
Speculative Risk
Strategic Risk
Strategy Risk
Supply Risk
Systemic Risk
Tactical Risk
Taxation Risk
Technology Risk
Risk Transfer
Unforced Error
Upside Risk
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