Risk Evaluation and Management

Course details

Risk is costly. Taking 'risk insurance' against it makes sense, but what is the most effective way to ensure against risk? To avoid the high cost of risk one must take measures against it. Therefore, to be aware of all possibilities is the key and knowbdge leading into practice is the best policy. Effective risk management can make all the difference when it comes to delivering challenging and complex projects, and achieving business objectives. The level of risk in projects today is increasing and success crucially depends on developing an effective mindset, process and practice in relation to early risk assessment and creative risk strategies. This training explores techniques and approaches in modern risk management, drawing on relevant cross-industry approaches.

Expected Accomplishments

• Analyze and evaluate project risk
• Develop creative risk strategies to mprove the outcome of projects
• Understand different sources of risk including: technical, supplier, financial, customer, resources, schedule, contractual and environmental risk factors
• Explore the range of tools, techniques and processes available to improve risk management practice
• Understand new options and approaches for managing risks within own project and environments

Course Outline

• Introduction
  • Understanding the fundamental concepts and importance of risk management
  • The risk cycle and process throughout the project lifecycle
  • The attributes of an effective risk management process and culture
  • Project, program and business level risk
• Early Risk Assessment
  • The value of early risk assessment
  • Understanding the difference between the known, the known unknown and the real unknown
  • Expanding the consideration of the sources of potential risk
  • Advantages and limitations of various risk identification and assessment techniques
    • Risk questionnaires and checklists
    • Using a multi-disciplined team
    • Expert judgment
    • Brainstorm, critical review and consensus techniques
    • Evidence-based techniques
    • Quantitative and Qualitative techniques
  • Assessment of impact - financial, schedule, quality, customer relationship, contract, business and opportunity perspectives
  • Risk prioritization techniques
  • Applying the techniques within the case study
    • developing the initial risk assessment and risk register
• Initial Risk Strategy and Response
  • Understanding the meaning and application of mitigation, transfer, avoidance, retention, contingencies and reserves
  • Understanding stakeholder risk tolerance - including the organizational and cultural dimension
  • Determining risk ownership
  • Developing the initial strategy in relation to the project opportunity
  • Developing the high level risk strategy for the case study
• Strategies for specific risk sources
  • Understanding how risk relates to contract terms and conditions and customer and/or supplier agreements
  • Negotiation as a risk strategy tool
  • Risk in relation to people, organizational factors and organizational culture
  • Handling resource risks
  • Risk in relation to conflicts of interest and priorities
  • Essential leadership and communication strategies
  • Case study exercises - negotiating agreements in relation to risk
• Establishing the risk baseline and risk management throughout the life cycle
  • Assessing the level of retained risk
  • Establishing the baseline risk register, contingency and reserves
  • Devising specific and general, unallocated contingencies and reserves
  • Risk monitoring and on-going risk reviews
  • Risk communication - to the customer, senior management and the team
  • Early anticipation to new risks- preventing issues from escalating
  • Closing risks
• Conclusion
  • Drawing key lessons from the workshop experience
  • Steps to improving the risk management culture
  • 10 key ingredients of a risk management mindset

Who can benefit

• All managers and directors who wish to further their understanding of risk management and how it can benefit their projects and business outcomes.

Related Training

• Strategic Planning for Superior Performance
• Business Planning
• Creativity, problem solving and decision making

Mode

• Consultant led classes including exercises, case studies and group discussions

Prerequisites

• Good analytical skills