What is the best strategy to mitigate cost risk?

The best strategy to mitigate cost risk involves thorough project planning, including detailed Budgeting and Forecasting to identify potential cost overruns early. Implementing regular monitoring and reporting processes helps track expenses against the budget, allowing for timely adjustments. Additionally, diversifying suppliers and negotiating fixed-price contracts can protect against price fluctuations. Lastly, maintaining a contingency fund provides a financial buffer for unexpected costs.