Global Journal of Human Social Science, E: Economics, Volume 23 Issue 3

b) Enhanced Organizational Resilience Companies with deep control of product costs are better equipped to withstand market disruptions, economic downturns, and other risks. A strong focus on cost managementenables businesses to maintain a lean and efficient operation, making them more adaptable to change and helping them recover more quickly from adverse events. c) Improved Strategic Planning Effective cost control contributes to better strategic planning by providing companies with accurate and reliable information about their cost structures. This data can be used to develop long-term plans, identify growth opportunities, and allocate resources more effectively. In the context of risk management, a well- informed strategic plan can help organizations anticipate and mitigate potential risks, ensuring their long-term success. d) Stronger Supply Chain Management Deep control of product costs extends to supply chain management, where businesses can identify potential risks and vulnerabilities. By understanding costs associated with each stage of the supply chain, companies can make informed decisions about sourcing, logistics, and inventory management, reducing the likelihood of disruptions and ensuring the timely delivery of products to customers. e) Robust Regulatory Compliance In many industries, companies must adhere to strict regulatory requirements regarding product quality, safety, and environmental impact. By having deep control of product costs, businesses can ensure that they allocate sufficient resources to meeting these requirements, reducing the risk of non-compliance, fines, and reputation. V. I ncreased A gility and F lexibility Effective risk management requires agility and flexibility. By planning and managing product costs effectively, a company can be more agile and flexible in responding to changes in the market or in its operations. For example, if a competitor lowers its prices,a company with planned product cost control can quickly adjust its pricing strategy to remain competitive. Additionally, by managing costs effectively, a company can invest innew technologies, products, or markets, allowing it to adapt to changes in the business environment and take advantage of new opportunities. VI. I mproved R isk M itigation Finally, planned product cost control can help a company to mitigate risk. By planning and managing costs effectively, a company can identify potential areas of risk and develop strategies to mitigate them. For example, if the cost of a key material increases, a company can develop alternative sourcing strategies or invest in new technologies to reduce its reliance on that material. By identifying and mitigating risks, a company can reduce the likelihood and impact of disruptions to its operations and improve its overallresilience. In conclusion, planned product cost control is essential for effective risk management. Byplanning and managing costs effectively, a company can improve its financial performance, market position, supply chain management, decision making, agility, flexibility, and risk mitigation. As such, it is essential for companies to invest in the tools, processes, and strategies necessary to achieve planned product cost control, in order to succeed in today's highly competitive business environment. © 2023 Global Journals Volume XXIII Issue III Version I 24 Global Journal of Human Social Science - Year 2023 ( )E Harnessing the Power of Cost Control in Risk Management: Advantages and Benefits for Companies