INTRODUCTION ENGINEERING PROJECT RISK MANAGEMENT
Engineering project risk management is a crucial aspect of project management that involves identifying, assessing, and mitigating risks that could impact the successful completion of engineering projects.
Importance in Engineering Projects:
- Complexity and Uncertainty: Engineering projects often involve high levels of complexity and uncertainty, making effective risk management essential.
- Safety and Compliance: Many engineering projects must adhere to strict safety standards and regulatory requirements, where risk management ensures compliance and safety.
- Cost and Schedule Control: Proactive risk management helps in controlling costs and schedules by anticipating potential issues and addressing them before they escalate.
- Quality Assurance: Identifying and mitigating risks early ensures that project deliverables meet the required quality standards.
Effective risk management in engineering projects is essential for ensuring that projects are completed on time, within budget, and to the desired quality standards. By systematically identifying, assessing, prioritizing, and responding to risks, project managers can mitigate potential negative impacts and improve the likelihood of project success.
LEARNING OBJECTIVE
- Ability to Identify Risk(s) by Definition: potential risks that could affect the project’s objectives, scope, schedule, cost, and quality.
- Comprehend methods in Risk Management: Brainstorming, expert interviews, checklists, historical data analysis, and SWOT analysis (Strengths, Weaknesses, Opportunities, Threats).
- Ability to perform Risk Assessment: Qualitative Analysis vs Quantitative Analysis
- Attain knowledge In the use of numerical methods and models to quantify risks, such as Monte Carlo simulations, sensitivity analysis, and decision tree analysis.
- Perform Risk Prioritization by Risk Ranking: Rank risks based on their potential impact and likelihood.
- Execute a Risk Matrix: Visualize risks on a matrix to prioritize and determine the appropriate response strategies.
- Execute Risk Response Planning: Mitigation: Develop strategies to reduce the likelihood or impact of risks (e.g., additional testing, alternative designs).
- Avoidance: Change project plans to eliminate risks (e.g., selecting a different technology).
- Ability to perform Risk Monitoring and Control
- Perform Risk Audits & Status Reporting to keep stakeholders informed about the status of risks and the effectiveness of risk response actions.
WHO SHOULD ATTEND
Managers, Engineers, Supervisors, Executives, Project Leaders & Planners
COURSE CONTENT
Module 1 Introduction to Projects & Risk Management
- How do we manage risks
- Strategies of Risk Management – Positive & Negative Risks
- Five Types of Project Risks
- Handling various risk types
Module 2 Risk Analysis
- Risk Analysis
- Methods of Risk Analysis – Qualitative & Quantitative
- Sources of Risks
- Identifying major sources of Risk
Module 3 Risk Management
- Risk Management Plan (RMP)
- SWOT Analysis
- 6 Steps of Risk Management
- Benefits of Risk Management
Module 4 Risk Assessment Process
- Process of Risk Assessment
- Level of Occurrence
- The Monte Carlo Process
- Probability & Impact Matrix
Module 5 Risks at Various Stages
- Taking Risk Stage by Stage
- Risk during Initiation Phase
- Risk during Planning Phase
- Risk during Execution Phase
- Risk during Close Out Phase
Module 6 Risk Response Planning
- Objectives of Risk Response Planning
- Strategies of Risk Response
- Threats & Opportunities
- Residual & Secondary Risks
Module 7 Response Planning – Case In Study
- Risk Avoidance
- Risk Transference
- Risk Mitigation
- Risk Acceptance
Module 8 Risk Audits & Status Reporting
- General Risk Mitigation Strategies
- Performing an effective audit
- Status reporting of a Project
- Assessment Summary
