Course Outline

Course Outline

The 10-day Advanced Contract & Project Risk Management

Ref No. Dates Venue Fee (US$)  
CM 010 17 - 28 Feb 2019 Dubai 9000 Register
CM 010 28 Jul - 08 Aug 2019 Dubai 9000 Register
CM 010 15 - 26 Dec 2019 Dubai 9000 Register

The 10-day Advanced Contract & Project Risk Management

Introduction

Week 1 of PROCLAD Academy’s 10-day Advanced Contract & Project Risk Management training course, the emphasise will be on developing a solid understanding of the complexities of risk management. The course content recognizes the importance of planning, monitoring, and proactive insight into risk areas related to the contract’s stated performance outputs and outcomes.

During Week 2, delegates to apply the tools and techniques of modern project risk management effectively in order to deal with a wide variety of risks and uncertainties related to the project. The training course does not assume any prior knowledge of the topics covered. New concepts and tools are introduced gradually to enable participants to progress from the fundamental to the advanced concepts of project risk management.

The key features of PROCLAD Academy’s 10-day Advanced Contract & Project Risk Management training course are:

  • Overview of risk management and how it can be applied to contracts consistently
  • Practical application of quantitative data to mitigate contract risk
  • Pre & post contract processes, such as managing contingency & resolving issues
  • Optimising contract risk management rather than risk allocation
  • Using risk management processes to identify weaknesses in the contract
  • Identifying risk categories related to your organisation’s operations and projects
  • Identifying project-specific risks and uncertainties related to design, planning, operation and maintenance
  • Using a proven set of skills and techniques for the quantification, analysis and mitigation of identified risks
Learning Objectives

Participants attending PROCLAD Academy’s 10-day Advanced Contract & Project Risk Management training course will:

  • Understand how to develop an integrated risk management process for all contracts to reduce business risk
  • Appreciate how to obtain a realistic contingency for contracts to improve competitiveness
  • Use risk management with the parties pre and post contract to gain better contract outcomes
  • Quantify issues to enhance quicker and more commercially focused contract negotiations
  • Develop contracts that are more equitable using risk management
  • Learn to use risk processes to identify if the contract is robust or weak
  • Identify project-specific risks and uncertainties related to project design, planning, execution and operation
  • Identify technical parameters, specifications and the project schedule
  • Use qualitative and quantitative methods to assess the exposure of the project to particular risks in real and measurable financial terms
  • Prioritise and rank risks in order to deal with them systematically
  • Apply the concept of expected monetary value to develop adequate contingency levels
  • Employ the six primary risk treatment strategies to develop pro-active responses to potential risks
  • Apply a dynamic risk mitigation process to reduce the risk profile to comply with organizational thresholds
Target Audience

PROCLAD Academy’s 10-day Advanced Contract & Project Risk Management training course is relevant to:

  • Those working with contracts and tasked with optimising their performance
  • Those concerned with defining and implementing best practice contracts, as it illustrates how managing contract risk can affect and enhance an organisation
  • Those working with contracts and wanting to see how risk management can improve contract outcomes
  • Project team leaders, project planners and scheduling staff, production engineers, project professionals
  • Staff members responsible for or involved in project risk management
Training Methodology

Participants on PROCLAD Academy’s 10-day Advanced Contract & Project Risk Management training course will develop advanced contract & project risk management skills and knowledge through formal and interactive learning methods. The course includes individual exercises, team projects, applicable case studies, group discussions and video material that will bring to life the skills acquired throughout the course.

Course Outline
  • The development of risk management
  • Risk in the contract cycle
  • Individual risk profiles and implications
  • Benefits of undertaking risk management to an organisation

Development of an Integrated Context

  • An outline of the qualitative risk management process
  • Minimising process requirements for contracts
  • The importance of objectives
  • The use of a risk breakdown structure
  • Workshops – how and when
  • Reporting and key factors for ongoing management of risk
  • Developing a procedure that supports governance and aligns with enterprise risk management processes

Identifying Contingency

  • What has happened in the past
  • What is possible now
  • How to use contingency as a tool to add value to tendering processes
  • Issues logs and required data
  • Assessing the “bottom line”
  • Using the analysis in contract negotiations

Undertaking a Detailed Review of the Contract

  • Planning a workshop to “stress” the contract
  • Identifying areas of weakness
  • Using this to improve contract or tender
  • Using risk management to improve the contract during tendering
  • Using risk management post contract to reduce conflict
  • Gaining a competitive advantage through risk management

Raising the Safety Risk Management Bar

  • Setting up processes for a whole of project life approach to safety
  • Complying with aspirational standards
  • Integrating processes from design to standard operating procedures
  • Importance
  • Responsibilities
  • Structure
  • Content

Monitoring and Surveillance

  • The Contract Administration Plan
  • Performance and Plan Adjustments
  • Summary 
  • Definitions – What is Risk?
  • The Triple Constraint & Stakeholder Analysis
  • Risk Management Processes & Model
    • Establish risk context and criteria
    • Identify the risk events, risk triggers (causes), and risk receptors (effects)
    • Analyze risk events by qualitative or quantitative methods
    • Formulate risk treatment strategies and analyse the effect of each on the risk cost
    • Implement the selected risk strategies
  • Identifying Potential Risk Events
  • Techniques for Identifying Risk Events
  • Identifying Triggers, Indicators and Receptors
  • Risk Scenario Description
  • Qualitative and Semi-Quantitative Risk Analysis Techniques
  • Risk Matrices and Risk Ranking
  • Techniques for Identifying Risk Events
    • Regular expert panel meetings
    • Brainstorming
    • Delphi technique
    • Nominal group technique (NGT)
    • Crawford slip
    • Fishbone Diagramming
  • Qualitative Descriptions of Probability
  • Qualitative Descriptions of Impact
  • Qualitative Risk Analysis Matrix
  • Risk Response Strategies
  • Progressive Risk Management Plan Development
  • Detailed Risk Quantification and Prioritization
  • Risk Characteristics
  • Risk Matrices and Risk Ranking
    • Estimating Probability
    • Estimating Impact
    • Weighted Probability & Impact Rating
  • Risk Ranking
  • Progressive Risk Management Plan Development
  • Expected Monetary Value Concepts (EMV)
  • Risk Quantification and EMV
  • Decisions Under Conditions of Uncertainty
  • Progressive Risk Management Plan Development
  • Detailed Risk Quantification and Prioritisation
  • Expected Monetary Value Concepts
  • Risk Quantification and Expected Monetary Value
    • Best case scenario
    • Base case scenario
    • Worst case scenario
  • Decisions Under Conditions of Uncertainty
  • Risk Treatment Objectives
  • Procedure for Risk Strategy Development
  • Risk Response Development Matrix
  • Risk Strategy Development and Implementation
  • Forecasting Annual Project Cash Flows over the Economic Life
  • Financial Scenario Planning and Risk Mitigation
  • Risk Quantification and Expected Monetary Value
  • Scenario Planning
  • Developing Risk Mitigation Strategies
  • Procedure for Risk Strategy Development
  • Risk Response Strategies
    • Risk Acceptance
    • Risk Prevention
    • Risk Avoidance
    • Risk Mitigation
  • Risk Transfer & Contracting
  • Implementing Mitigation Strategies
  • Multiple Option Decisions
  • Combining Risk and Cash Flow Analyses