Project Planning Training and Project Risk Management Training / Onsite Program

Project Risk Management Training

(15 PMI PDU's)

Description:
Improve business decisions and project performance

"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 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 also learn to establish specific project 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.

Course Objectives
Upon completion of this course, participants 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.

Course Outline

1. Introduction to Risk Management

• Known project risks vs. unknown project 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 Project Business Case

• The purpose of a project business case
• Project SWOT: Strengths, Weaknesses, Opportunities and Threats
• Elements of a project business case
• Financial concepts for project managers
• Performance budget, project target cost and project contract price
• Project business case vs. project statement of work (SOW)
• Phased gate development and business case reviews

3. Project Risk Identification

• Sources and inputs to project risk identification
• Project planning fundamentals
• Project schedule heuristics: Coordination risk and levels of control
• Project team analytical tools
• Building a project risk profile
• Documenting the project risk
• Initial project prioritization
• Project risk identification and response development: An iterative process

4. Project Risk Analysis

• The project risk management process
• Refining the project risk statement
• Project root cause analysis
• Probability
• Expected value
• Decision trees
• What to do when you can’t get good project estimates
• Project cost, project schedule, project quality and project risk
• PERT schedule analysis
• Schedule probability
• Monte Carlo simulation

5. Developing a Project Risk Management Plan

• Prioritizing project risks
• Selecting a project risk strategy
• Elements of the project risk management plan
• The project risk log
• Strategy integration matrix
• Project risk summary reports
• Negotiating the project contingency and project reserve
• Appointing a project risk officer

6. Continuous Project 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

Target Audience:
Senior project managers and others who have experience executing the principles of project management.