Project Risk Management

Introduction:

This seminar will emphasize awareness of project risk management to minimize project cost/schedule overruns & improve project execution.

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.

Targeted Groups:

• Project Managers
• Head of Departments
• Risk Management Staff
• Managers
• Professionals who want to gain new skills to improve their profile

Course Objectives:

At the end of this course the participants will be able to:

• Get an overview of the Risk Management Process
• Learn to identify risks that affect project quality, time & schedule, cost and scope
• Apply useful techniques to identify, analyze, mitigate and monitor risks in the project life cycle
• Learn how to create an effective risk monitoring plan and risk management strategies.
• Use a practical, six-step process to manage project risk
• Develop a risk budget based on expected monetary value (EMV)
• Identify threats and opportunities and weigh their relative value in your project
• Learn how to rank risks based on the amount of exposure to the company
• Develop the skill necessary to quantify risks
• Employ the concept of Expected Monetary Value (EMV) to prioritize the risk mitigation strategy
• Control multiple risks using concise strategies
• Make risk and opportunity integral components of your next project plan

Targeted Competencies:

• Improving risk monitoring and control
• Analyzing and assessing risks
• Controlling risks
• Mitigating risks
• Reporting risks

Course Content:

Unit 1: Risk Management Framework and Planning

• Key definitions
• Project Management Body Of Knowledge (PMBOK) - 6 risk management processes
• Project risk management goal
• Purpose of 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

Unit 2: Risk Planning:

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

Unit 3: Risk Identification:

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

Unit 4: Reviewing Cost & Schedule Risk Estimation:

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

Unit 5: Risk Assessment & Quantification:

• 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

Unit 6: Risk Response Plan Development:

• 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

Unit 7: Risk Response Control:

• Risk management plan execution
• Risk response control tools
• Risk response control guidelines
• Risk strategy execution
• Evaluating risk response results
• Risk documentation