Courses

FOUNDATIONAL PROJECT RISK MANAGEMENT
Presented by Dr David Hillson FAPM PMP FIRM, Director, Risk Doctor & Partners

Course Summary

This two-day course is structured around the process described in the best-practice “Project Risk Analysis & Management (PRAM) Guide” (second edition) from the UK Association for Project Management (APM) and aims to improve understanding of the purpose, principles and practice of project risk management and the essential requirements for risk to be managed successfully. Delegates will understand the benefits of using project risk management in order to control the effects of uncertainty whilst maximising benefits to the organisation.

The course covers the following main topics:

• Overview - key principles and definitions, roles and responsibilities
• Process summary
• Define and Focus - clarifying objectives and scoping the risk process
• Initiate - clarifying objectives and scoping the risk process
• Risk Identification - using key techniques, separating cause/risk/effect
• Qualitative Risk Assessment - defining probability and impacts, using P-I Grids, Risk Register, Risk Breakdown Structures, Risk reporting
• Risk Planning - allocating owners, determining effective strategies and responses
• Quantitative Risk Analysis - principles of Monte Carlo simulation, creating a model, quantifying uncertainty, distributions, branching and dependency, interpreting outputs (S-curves, criticality)
• Human Dimensions - understanding risk attitudes, sources of bias
• Managing Risk Effectively - implementation issues, benefits and shortfalls

The course includes a significant proportion of practical exercises (up to 40%), with a worked example case study to allow delegates to practise the process.

Course Topics - Day One

1. Introduction
   Overview and objectives of the course
   Delegate introduction
2. Overview
   Definitions of risk
   Sources of uncertainty
   Definition of risk management
   Why use it?
3. Initiation
   Defining the project
   Focusing the risk process
   The Risk Management Plan
4. Risk Identification
   How to use:
   Brainstorming
   SWOT Analysis
   Assumptions Analysis
   Prompt Lists and Check Lists
   Previous Experience
   
   Risk Exercise 1
5. Risk Assessment
   Qualitative Assessment:
   Probability and impact
   Risk ranking
   Risk categorisation
   Recording and reporting risks
   
   Risk Exercise 2
6. Risk Planning
   Risk Owners
   Risk Responses for both threats and opportunities
   
   Risk Exercise 3

Course Topics - Day Two

7. Rationale for Risk Analysis
   The role of quantitative analysis in the overall risk management process
   Strengths and weaknesses
8. Risk Modelling Basics
   Aims of risk analysis
   Techniques
   Monte Carlo simulation
   Developing a risk model
   Quantifying uncertainty
   
   Risk Exercise 4
9. Advanced Risk Modelling
   Using advanced modelling techniques
   Stochastic branching
   Probabilistic branching
   Conditional branching
   Dependency
   Understanding outputs
   Using results
   S Curves
   Criticality analysis
10. Risk Analysis Tools
    Why use them?
    Choosing a tool
11. Human Dimensions
    Why estimates vary
    Accounting for heuristics
    What is a good estimate
12. Managing Risk Effectively
    Why use risk management?
    Benefits of risk management
    Downside of risk management
    Implementing risk management
13. COURSE CONCLUSION