Developing Project Risk Management Strategies

Introduction:

This seminar emphasizes the importance of project risk management in mitigating cost and schedule overruns while improving project execution. Effective project management relies on robust risk management practices, which encompass identifying both positive and negative risks and leveraging opportunities. Despite its significance, risk management is often treated as an afterthought or overlooked entirely.

This specialized Developing Project Risk Management Strategies course advocates for a systematic and proactive approach to managing both negative and positive risks. Participants will be equipped with both qualitative and quantitative risk management techniques to enhance project performance and ensure successful project delivery.

Objectives:

By the end of this Developing Project Risk Management Strategies course, learners will be able to:

• Acquire knowledge of the risk management process.
• Identify potential risks affecting project quality, time, schedule, cost, and scope.
• Apply tools to identify, evaluate, treat, and track risks throughout the project lifecycle.
• Develop an effective risk monitoring framework and risk management plans.
• Implement a six-step project risk management procedure.
• Establish a risk budget using Expected Monetary Value (EMV).
• Assess and prioritize risks and opportunities in the project.
• Categorize risks and determine their relative impact.
• Effectively manage risks using risk factors and events.
• Use EMV to make informed risk response decisions.
• Address a variety of risks with practical strategies.
• Integrate risk management into the project schedule.

Training Methodology:

• Case Studies
• Interactive Exercises
• Workshops
• Role Play
• Simulations
• Group Discussions
• Expert Panel Discussions

Course Outline:

Unit 1: Risk Management Framework and Planning

• Basic terminology and phrases
• PMBOK’s 6 risk management processes
• Purpose and advantages of risk management
• Roles and responsibilities in risk management
• Evolution of risk control
• Nature of risks
• Six steps of risk management:
  • Risk management plan
  • Planning inputs, tools, and outputs
  • Internal communication management plan

Unit 2: Risk Planning

• Risk management plan development
• Management and planning inputs

Unit 3: Risk Identification

• Identification tools and inputs
• Risk classification and outputs
• General guidelines for risk identification

Unit 4: Reviewing Cost and Schedule Risk Estimation

• Expense categorization
• Cost estimation methods
• Collation, allowances, accuracy, and management reserve
• Work Breakdown Structure (WBS)
• Schedule diagrams and Critical Path Method (CPM)
• Resource management
• Earned Value Management (EVM)
• Baselineing processes

Unit 5: Risk Assessment and Quantification

• Risk analysis outcomes and techniques
• Probability and impact analysis
• Qualitative and quantitative risk analysis
• Statistical methods: PERT, Monte Carlo simulation, Decision trees
• Risk identification and rating
• Analysis outputs

Unit 6: Risk Response Plan Development

• Risk management plan development
• Response strategy guidelines
• Strategies for addressing threats
• Planning and network diagramming
• Response examination and displacement
• Contingency and management stabilization

Unit 7: Risk Response Control

• Implementing the risk management plan
• Tools for response control
• Guidelines for response control
• Evaluation of risk response results
• Risk documentation