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Risk Management in ERP Projects: Buffers and Cost Control - 365 Business Central

EDUARDO PACHERRES LUJÁN Profile Picture EDUARDO PACHERRES L...

Buffers and Their Cost Impact

Every buffer added to a project — whether extra days in testing or weeks before go‑live — translates into additional costs: consultant hours, extended licences, or supplier fees. The challenge is not the buffer itself, but failing to measure its financial impact.

  • Phase buffers: e.g., "Y" extra days in user testing → 24 consulting hours → "€ X,XXX".

  • Global buffer before go‑live: e.g., "Y" weeks → tens of thousands in external services.

Smart risk management means treating buffers as controlled investments, not hidden overspend.


Minimising Buffer Costs

- Proportional buffers – Add cushions only in critical phases (analysis, testing, migration).

- Documented investment – Record the cost of each buffer to justify its preventive value.

- Dynamic adjustment – Reduce or reallocate buffers if earlier phases close without issues.

- Scenario modelling – Use Business Central budget scenarios to compare costs with and without buffers.


Modern Risk Management Practices

  • Formal risk register with financial impact.

  • Scenario simulation with Power BI to visualise budget variations.

  • Supplier contract management to absorb buffers without extra billing.

  • Transparent communication with finance leadership to present buffers as mitigation, not overspend.


To conclude:

Buffers are necessary, but they must be managed with financial vision. In ERP projects, every extra day has a cost. By minimising their impact through proportional planning, scenario simulation, and transparent reporting, buffers evolve from hidden expenses into strategic investments that safeguard project success.

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