Managing Project Risk

This 2-day course explores quantitative and qualitative techniques to identify and analyze project risk factors (risk event, event probability, and event impact). A variety of risk response choices are discussed, and risk identification and risk response are practiced in workshop groups. Quantitative techniques are applied to problems, but don’t worry, advanced mathematics is not used!

LEARNING OBJECTIVES

Participants will gain practical skills to:

• Apply a common framework of project risk management of the Project Management Institute.
• Value the importance of including risk management in project planning and execution.
• Facilitate team discussions to identify project risks and opportunities, and formulate risk responses.
• Use expected monetary value
• Describe other techniques such as decision trees, Delphi method, and Monte Carlo simulation, and when they are applicable.
• Analyze risks and select response strategies appropriate to priorities and organization risk tolerances.

WHO SHOULD ATTEND

The Managing Project Risk course is suitable for individuals who are:

• Project Managers and team members who already work in a well established project management environment but wish to improve their project risk management processes.
• Members of a project team looking to “jump-start” their risk management on a new and risky project.

PREREQUISITE

• 3-day Project Management Esentials or its equivalent.

MATERIALS

You will receive a course binder containing copies of presentation slides, case studies, templates, exercises, and suggested solutions.

WHAT YOU WILL LEARN

Introduction

• Risk factors
• Workshop-lessons learned

Risk Management Process

• Risk identification
• Workshop - stakeholders
• Risk classification systems
• Workshop - risk identification
• Risk quantification
• Risk tolerance
• Workshop - risk tolerance
• Risk response development
• Avoidance, mitigation
• Deflection, acceptance
• Contingency in budget
• Contingency in schedule
• Workshop - risk responses
• Risk management plan

Risk Tools

• Facilitative tools
• Video & discussion - groupthink
• Workshop - affinity diagram
• Probability & statistics
• Monte Carlo simulation
• Software demonstration (Risk +)
• Expected monetary value
• Exercise - payoff tables
• Decision trees
• Exercise - decision tree
• Critical path network
• Statistical sums
• Workshop - candidate responses

Wrap-Up

• Exercise-project environments
• Wrap-up