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Improve Business Decisions and Project Performance
Avoiding all risks means avoiding all opportunities.
Risk management increases the odds of success.
Table of Contents
Introduction
Audience
At Course Completion
Prerequisites
Certified Professional Exams
Student Materials
Course Outline
Introduction
“Failure to actively manage project risk” is one of the most frequently
cited causes of project failure. This course enables project managers to systematically
manage the uncertainty inherent in every project to minimize the threats without
crippling the opportunities. It’s a fine balance that the best project
managers know how to achieve.
Participants will learn a step-by-step process to identify and respond to project
risks that occur throughout the project life cycle, from the initial business
case through implementation. They will also learn to establish specific budgets
to account for both known and unknown project risks.
Benefits
- Improve the bottom line with more accurate cost and schedule estimates.
- Use past successes and pitfalls to improve future performance.
- Recognize and avoid problems before they occur.
- Build executive support for your project through accurate, meaningful reporting.
- Learn to energize your team members by involving them in risk management
activities.
- Understand the power and availability of risk management software tools.
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Audience
Senior project managers and others who have experience executing the principles
of project management.
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At Course Completion
At the end of this course, the student will be able to:
- Understand the components of a project’s business case.
- Identify project-related risks and develop appropriate response plans.
- Prioritize risks based on probability, impact and expected value.
- Use analysis techniques to lead groups of people through risk management
activities.
- Develop contingency budgets to account for known project risks.
- Use Earned Value Management techniques to quantify cost and schedule progress
during a project.
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Prerequisites
None provided.
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Certified Professional Exams
No exam currently exists for this course.
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Student Materials
The student kit includes a comprehensive workbook and other necessary materials
for this class.
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Course Outline
1. Introduction to Risk Management
- Known risks vs. unknown risks
- Project management and risk management
- Risk management within project management functions
- Risk management throughout the project lifecycle
- The project manager’s “place at the table”
- Project lifecycle vs. product development lifecycle
- Risk tolerance
- Risks: Opportunities and threats
2. Managing the Business Case
- The purpose of a business case
- SWOT: Strengths, Weaknesses, Opportunities and Threats
- Elements of a business case
- Financial concepts for project managers
- Performance budget, target cost and contract price
- Business case vs. statement of work
- Phased gate development and business case reviews
3. Risk Identification
- Sources and inputs to risk identification
- Project planning fundamentals
- Schedule heuristics:
- Coordination risk and levels of control
- Team analytical tools
- Building a risk profile
- Documenting the risk
- Initial prioritization
- Risk identification and response development:
- An iterative process
4. Risk Analysis
- The risk management process
- Refining the risk statement
- Root cause analysis
- Probability
- Expected value
- Decision trees
- What to do when you can’t get good estimates
- Cost, schedule, quality and risk
- PERT schedule analysis
- Schedule probability
- Monte Carlo simulation
5. Developing a Risk Management Plan
- Prioritizing risks
- Selecting a risk strategy
- Elements of the risk management plan
- The risk log
- Strategy integration matrix
- Risk summary reports
- Negotiating the contingency and reserve
- Appointing a risk officer
6. Continuous Risk Management
- Earned value management Escalation thresholds
- Cash flow considerations
- Executing the risk management plan
- Updating status at regular intervals
- Business case review
- Project close out
7. Success Factors in Risk Management
- High reliability organizations
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