Project Risk Analysis, Management & Compliance

Course Title; Project Risk Analysis, Management & Compliance

Course Preamble.
Risk management is a process of identifying, analyzing and responding to any risk that arises during the life cycle of a project in order to help the project remain on track and meet its objectives. Risk assessment and management should not only be reactive, but should be considered as part of the planning process of a project.
In order to manage risks effectively, it is important to identify them correctly. Thus, a risk is any incident, phenomena or factor that can potentially impact project timelines, performance and/or budget.

Training Modules.
Project Structure Selection
 Planning Structures for Delivering Projects
 Defining a risk tolerance baseline for all activity, plus incremental procedures for high-value, complex projects
 Scaling risk management to the size and complexity of a programme or project
 Project structures to address risks from the points of view of:
o Sponsors
o Lenders
o Investors
o Contractors
 Concession Contract Models
 Foreign Direct Investments
 Joint Ventures
 Service Outsourcings
 Keeping Structures & Financing Flexible to Accommodate Changes

Importance of Risk Management
 Achievement of project objectives
 Reduced costs
 Decreased impact of negative risks
 New opportunities
 Controlled project implementation
 Better strategic decisions
 Increased return-on-investment and credibility

Risk Identification & Assessment
Risk Identification Techniques
 Document reviews
 Brainstorming
 Delphi technique
 Root–Cause Analyses
 Checklists/Assumption analyses
 Risk register
 Monte Carlo analysis
 Decision tree
Developing a Risk Matrix with Risk Ratings based on Probability and Impact
 Types of Risk
o Hazard Risks
o Financial (business) Risks
o Operational (technical) Risks
o Strategic Risks
o Internal & Finance Risks
o External Risks
 Risk Assessment / Analysis
 Sensitivity Analysis – (“what if analysis”)
o Identifying Risks
o Identifying the Impacts of Risk
o Estimating the Likelihood of Risks Occurring
o Estimate the Cost of Risk
 Risk Response / Mitigation Planning
 Monitoring and Communicating Risk

Rules of Risk Management
 Make risk management part of project planning
 Identify risks early in the project
 Communicate about risks
 Consider threats and opportunities
 Clarify ownership issues
 Prioritize risks
 Analyze risks
 Plan and implement risk responses
 Register project risks
 Devise qualitative and quantitative measurements of risks
 Track risks and associated tasks

Risk Management
 Objective of Project Risk Management
 Tools and Techniques for Risk Management
o Avoidance – modifying a project plan
o Transference – shifting consequences and responsibilities
o Mitigation – preventative action
o Acceptance – accepting risk outcomes
 Limitations of Risk Management
 Use of Insurance & External / 3rd Party Mechanisms in Risk Strategies
 Constructing a Risk-adjusted Project Cost Model
 Using Risk Factors to Test Affordability
 The Roles of Incentives, Sanctions and Risk Sharing
 Using Project Design, Financial and Organizational Arrangements as Risk Management Tools

Project Funding Solutions
 Embedding Risk Management into Normal Operations
 Allotting Appropriate Resources for Risk Management Activities
 Integrating Risk Management into Project Protocols and Controls
 Risk Management Monitoring and Control throughout the Project Lifecycle to Improve and Guide Risk Management Processes
 Evaluating Effectiveness of Risk Response Actions (and making adjustments within the project cycle)
 Summaries of Conclusions and Group Discussions

Challenges to Risk Management
 Multiple ownership
 Lack of communication
 Domination of operational risks
 Risk identification
 Alignment with business strategy

Success Factors of Risk Management
 Leadership commitment
 Communication
 Culture
 Organizational structure
 Training
 Information technology
 Trust

Way forward After the Training
Participants will develop a work plan, through the help of facilitators that stipulates application of skills acquired in improving their organizations. ASPM will monitor implementation progress after the training.

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