Risk Management

Course Outline Risk Management
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 1-day workshop will explore techniques and approaches in modern risk management, drawing on relevant cross-industry approaches.
To ensure a practical approach the workshop includes an interactive case study. Exercises will explore risk discovery, analysis and response. The primary emphasis will be on early detection of risk and the application of effective risk strategies. Exercises will be team based, and will involve people in risk negotiation and communication, in addition to analysis and risk strategy development.

Course Objectives
This workshop will provide a practical exploration of risk management, enabling participants to apply effective risk management practices in their own project and business environments. The workshop will enable delegates to:

• Analyse and evaluate project risk
• Develop creative risk strategies to improve the outcome of their projects
• Understand different sources of risk including: technical, supplier, financial, customer, resource, schedule, contractual and environmental risk factors
• Explore the range of tools, techniques and processes available to improve risk management practice
• To provide participants with new options and approaches for managing risks within their own project and programme environments.

 Who will the Course benefit?
All managers and directors who wish to further their understanding of risk management and how it can benefit their projects and business outcomes. The workshop is suitable for both people new to project management and experienced project or programme managers who wish to gain new insights into effective risk management practice.
Course Duration
1 day

Course Content
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, programme 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 judgement
- Brainstorm, critical review and consensus techniques
- Evidence based techniques
- Quantitative and Qualitative techniques

• Assessment of impact â€" financial, schedule, quality, customer relationship, contract, business and opportunity perspectives
• Risk prioritisation techniques
• Applying the techniques within the case study â€" 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 â€" including the organisational 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, organisational factors and organisational 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 â€" to the customer, senior management and the team
• Early anticipation to new risks â€" preventing issues from escalating
• Closing risks

Workshop Conclusion

• Drawing key lessons from the workshop experience
• Steps to improving the risk management culture
• 10 key ingredients of a risk management mindset