Advanced Project Risk Management

Introduction

This program will emphasize advanced project risk management to minimize project cost/schedule overruns & improve project execution. Advanced project management is all about the management of risks; the ability to seize opportunities, minimize threats, and to optimize results. However, risk management is too often treated as a reactive process, or worse, not done at all. In this Project Risk Management course, you’ll work through the proactive approach to both sides of risk: threats and opportunities. The approach is based on a clear understanding of both qualitative and quantitative approaches to risk management. Project Risk Management will show you how to examine both the threats and opportunities facing your projects from both a top-down and bottom-up perspective using a proven six-step risk management process. You’ll learn how to evaluate and respond to risk at the project as well as the task levels. As risk can never be eliminated from a project, project managers must be able to anticipate possible causes of cost and schedule overruns, together with poor quality of work. By identifying the warning signs to these as early as possible in the project timely corrective action can be taken to minimize or mitigate the impact. The project scope needs to be clearly defined for budget approval. This requires risk identification, assessment & quantification for determination of cost & schedule contingencies. These are then controlled using risk control techniques. The program content is in line with the Project Body of Knowledge (PMPBOK®Guide) published by the Project Management Institute (PMI). 

Objectives

The program is designed to provide practicing project managers, program managers, technical leaders and owner/sponsors with the skills and knowledge to successfully manage risk throughout the project cycle.

Training Methodology

This is an interactive course. There will be open question and answer sessions, regular group exercises and activities, videos, case studies, and presentations on best practices. Participants will have the opportunity to share with the facilitator and other participants on what works well and not so well for them, as well as work on issues from their own organizations. The online course is conducted online using MS-Teams/ClickMeeting.

Who Should Attend?

This program is intended for individuals who want to develop and refine their project risk management skills. No matter what your industry background is (i.e. engineering, information technology or business), this course will cover both the fundamental principles and modern techniques of project risk management.

Course Outline

Day 1: Introduction

• Key definitions
  • Advanced Project Management Body Of Knowledge (PMBOK® Guide )
     risk management processes
• Project risk management goal
• Purpose of Advanced risk management
• Benefits of risk management
• Responsibilities in risk management
• Integrating risk management into the project management process
• Components of risk
• Types of risk
• Six steps of risk management
• Plan the approach to risk management
• Risk Identification
• Risk Assessment & Quantification
• Risk Response Plan Development
• Risk management plan execution
• Evaluating risk response results

Risk Planning (Step 1)

• Plan the approach to risk management
• Planning inputs, tools & outputs

Day 2: Risk Identification (Step 2)

• Identification inputs & tools
• Identification guidelines
• Risk identification techniques
• Risk categories
• Risk identification outputs

Review of Cost & Schedule Estimating in Relation to Risk

• Cost estimating classes & types
• Cost estimating methods
• Adjustment of cost estimates
• Accuracy, allowances, contingency & management reserve
• Work Breakdown Structures (WBS)
• Schedule diagramming - critical path method (CPM)
• Resource management
• Earned value method (EVM)
• Baselining

Day 3: Risk Assessment & Quantification (Step 3)

• Risk analysis inputs
• Risk analysis guidelines
• Probability analysis
• Impact analysis
• Risk analysis approaches - qualitative & quantitative
• Risk analysis tools & techniques
• Statistical sums in risk analysis
• Program Evaluation & Revue Technique (PERT)
• Monte Carlo simulation
• Decision trees
• Project risk rating & prioritizing
• Risk analysis outputs

Day 4: Risk Response Plan Development (Step 4)

• Risk response development inputs, tools & techniques
• Risk response strategy guidelines
• Response strategies for threats
• Response planning & network diagramming
• Response analysis
• Alternative responses
• Reserves - contingency & management
• Response planning outputs

 Day 5: Risk Response Control

• Risk management plan execution (Step 5)
• Risk response control tools
• Risk response control guidelines
• Risk strategy execution
• Evaluating risk response results (Step 6)
• Risk documentation
• Project Environment & Contract Risks
• Stakeholder influence
• Managing project environment risks
• Contracting strategies
• Contract risk sharing
• Types of contracts and risks