Tag: Risk Management

Adroit will be providing a training seminar on risk management at the 2019 AACE International Conference & Expo

Adroit will be providing a training seminar on risk management at the 2019 AACE International Conference & Expo

Posted on by Adroit

Adroit will be providing the following training seminar at the 2019 AACE International Conference & Expo in New Orleans, LA on June 14 and June 15, 2019: Decision & Risk Management Professional (DRMP) Certification Exam Preparation.

This seminar is designed to help professionals study for AACE International’s (AACE) certification in Decision and Risk Management (DRM); and to provide a summarized review of relevant topics considered essential for DRMP knowledge. The selected topics are those outlined in AACE International’s Recommended Practice 11R-88 —Required Skills and Knowledge of Cost Engineering— and in AACE International’s Skills and Knowledge of Cost Engineering. This seminar is structured in a concise, systematic, and straightforward lecture format and covers primarily key topics in investment decision-making and risk management. The course material contains tutorials, exercises, and memo-writing assignment; and covers the key skills and knowledge used by DRM professionals.

Learning Objectives and Measurement

-To prepare and equip DRM professionals who are preparing to take the AACE International
DRMP certification examination with the knowledge and skills essential for DRMP knowledge
-To identify, understand and explore the Decision and Risk Management (DRM) processes
within the Total Cost Management Framework
-To describe how each of the Decision and Risk Management (DRM) processes can be
planned and implemented
-To learn how to apply investment decision-making and risk management practices under
different circumstances

Content

In covering investment decision-making, topics such as the structuring, evaluation, agreement, and implementation processes will be discussed and tools and techniques of decision making will be explored. Other key topics that will be covered as part of investment decision-making module are as follows:
-Cost vs. pricing: concepts, classifications, tools and techniques
-Lifecycle costs: project and asset
-Monetary versus opportunity costs
-Economic and financial analysis
-Engineering economics
-Decision-making terminology and concepts
-Basic concepts in probability and statistics
-Decision modeling and analysis

In covering risk management, topics such as plan risk management, assessment, treatment,
and control will be addressed. Other key topics that will be covered as part of the risk
management module are as follows:
-Risk management terminology and concepts
-Risk and uncertainty: concepts, classifications, tools and techniques
-Risk identification
-Risk assessment
-Risk analysis: qualitative and quantitative
-Sensitivity and decision-tree analysis
-Risk treatment: risk response strategies
-Risk monitoring, control, and reporting
-Specific Risk Management

Agenda

  1. Investment decision-making – Day 1
    Morning session:
    1. Introduction to TCM and its essential knowledge areas
    2. AACE International’s Canons of Ethics
    3. Structuring, evaluation, agreement, and implementation processes
    4. Cost vs. pricing: concepts, classifications, tools and techniques
    Afternoon session:
    5. Lifecycle costs: project and asset
    6. Monetary versus opportunity costs
    7. Economic and financial analysis
    8. Engineering economics
    9. Decision-making terminology and concepts
    10. Basic concepts in probability and statistics
    11. Decision modeling and analysis

    B. Risk Management – Day 2
    Morning session:
    12. Risk management terminology and concepts
    13. Risk and uncertainty: concepts, classifications, tools and techniques
    14. Plan risk management
    15. Risk identification
    Afternoon session:
    16. Risk assessment
    17. Risk analysis: qualitative and quantitative
    18. Sensitivity and decision-tree analysis
    19. Risk treatment: risk response strategies
    20. Risk monitoring, control, and reporting
    21. Specific Risk Management 

Instructor: Amin Terouhid, Ph.D., PE

Dr. Terouhid has served as a project management expert since 2003, and is currently a principal consultant at Adroit Consultants, LLC.  He has received a Ph.D. in construction management from the University of Florida, and holds the following professional certificates: Professional Engineer (P.E.) – Texas, Project Management Professional (PMP), Decision and Risk Management Professional (DRMP), and Planning and Scheduling Professional (PSP).

Dr. Terouhid’s expertise in project management is focused on project planning and control, cost engineering, risk management, and project claim analysis. His experience also includes forensic construction claims, and he has experience serving as an expert in assessing construction claims.  He is the author of AACE Recommended Practices 89R-16, 92R-17, and 91R-16, and the recipient of the 2018 AACE Technical Excellence Award.

For more information and to register, please see check out this link.

Adroit Provided a Training Seminar on Risk Management at the AACE International 2018 Conference - Nigeria Section

Adroit Provided a Training Seminar on Risk Management at the AACE International 2018 Conference – Nigeria Section

Posted on by Adroit

Adroit provided a training seminar on risk management at the AACE International 2018 Conference & Workshop – Nigeria Section. The Conference was held on December 4, 5, and 6, 2018 in the Petroleum Technology Development Fund (PTDF) building in Abuja, Nigeria. The event was sponsored by the Nigerian National Petroleum Corporation (NNPC).

This seminar was designed to help professionals study for AACE International’s (AACE) certification in Decision and Risk Management (DRM) and to provide a summarized review of relevant topics considered essential for DRMP knowledge. The selected topics were those outlined in AACE International’s Recommended Practice 11R-88 —Required Skills and Knowledge of Cost Engineering— and in AACE International’s Skills and Knowledge of Cost Engineering.

Some of the topics that were covered as part of the investment decision-making module are as follows:
-Cost vs. pricing: concepts, classifications, tools and techniques
-Lifecycle costs: project and asset
-Monetary versus opportunity costs
-Economic and financial analysis
-Engineering economics
-Decision-making terminology and concepts
-Basic concepts in probability and statistics
-Decision modeling and analysis

In covering risk management, topics such as plan risk management, assessment, treatment,
and control were addressed. Other key topics that were covered as part of the risk
management module are as follows:
-Risk management terminology and concepts
-Risk and uncertainty: concepts, classifications, tools and techniques
-Risk identification
-Risk assessment
-Risk analysis: qualitative and quantitative
-Sensitivity and decision-tree analysis
-Risk treatment: risk response strategies
-Risk monitoring, control, and reporting
-Specific Risk Management

 

Adroit’s consultants have demonstrated their expertise in providing training services in a wide range of project management related topics, including risk management, planning and scheduling, project delay analysis, and construction claims. If you are interested to find out more about our training programs, please contact us.

 

Adroit will be providing a training seminar on risk management at the 2018 AACE International Conference & Expo

Adroit will be providing a training seminar on risk management at the 2018 AACE International Conference & Expo

Posted on by Adroit

Adroit will be providing the following training seminar at the 2018 AACE International Conference & Expo in San Diego, CA on June 22 and June 23, 2018: Decision & Risk Management Professional (DRMP) Certification Exam Preparation.

This seminar is designed to help professionals study for AACE International’s (AACE) certification in Decision and Risk Management (DRM); and to provide a summarized review of relevant topics considered essential for DRMP knowledge. The selected topics are those outlined in AACE International’s Recommended Practice 11R-88 —Required Skills and Knowledge of Cost Engineering— and in AACE International’s Skills and Knowledge of Cost Engineering. This seminar is structured in a concise, systematic, and straightforward lecture format and covers primarily key topics in investment decision-making and risk management. The course material contains tutorials, exercises, and memo-writing assignment; and covers the key skills and knowledge used by DRM professionals.

Learning Objectives and Measurement

-To prepare and equip DRM professionals who are preparing to take the AACE International
DRMP certification examination with the knowledge and skills essential for DRMP knowledge
-To identify, understand and explore the Decision and Risk Management (DRM) processes
within the Total Cost Management Framework
-To describe how each of the Decision and Risk Management (DRM) processes can be
planned and implemented
-To learn how to apply investment decision-making and risk management practices under
different circumstances

Content

In covering investment decision-making, topics such as the structuring, evaluation, agreement, and implementation processes will be discussed and tools and techniques of decision making will be explored. Other key topics that will be covered as part of investment decision-making module are as follows:
-Cost vs. pricing: concepts, classifications, tools and techniques
-Lifecycle costs: project and asset
-Monetary versus opportunity costs
-Economic and financial analysis
-Engineering economics
-Decision-making terminology and concepts
-Basic concepts in probability and statistics
-Decision modeling and analysis

In covering risk management, topics such as plan risk management, assessment, treatment,
and control will be addressed. Other key topics that will be covered as part of the risk
management module are as follows:
-Risk management terminology and concepts
-Risk and uncertainty: concepts, classifications, tools and techniques
-Risk identification
-Risk assessment
-Risk analysis: qualitative and quantitative
-Sensitivity and decision-tree analysis
-Risk treatment: risk response strategies
-Risk monitoring, control, and reporting
-Specific Risk Management

Agenda

  1. Investment decision-making – Day 1
    Morning session:
    1. Introduction to TCM and its essential knowledge areas
    2. AACE International’s Canons of Ethics
    3. Structuring, evaluation, agreement, and implementation processes
    4. Cost vs. pricing: concepts, classifications, tools and techniques
    Afternoon session:
    5. Lifecycle costs: project and asset
    6. Monetary versus opportunity costs
    7. Economic and financial analysis
    8. Engineering economics
    9. Decision-making terminology and concepts
    10. Basic concepts in probability and statistics
    11. Decision modeling and analysis

    B. Risk Management – Day 2
    Morning session:
    12. Risk management terminology and concepts
    13. Risk and uncertainty: concepts, classifications, tools and techniques
    14. Plan risk management
    15. Risk identification
    Afternoon session:
    16. Risk assessment
    17. Risk analysis: qualitative and quantitative
    18. Sensitivity and decision-tree analysis
    19. Risk treatment: risk response strategies
    20. Risk monitoring, control, and reporting
    21. Specific Risk Management 

Instructor: Dr.  Amin Terouhid, PMP, DRMP, PSP
Dr. Terouhid is Adroit is a principal consultant at Adroit Consultants, LLC. He has a master’s degree in industrial engineering and another master’s degree in civil engineering. With a Ph.D. in construction management, Dr. Terouhid’s expertise is focused on project planning and scheduling, construction claim analysis, and cost engineering.  As an expert, Dr. Terouhid has provided consulting services to a wide range of clients for more than 14  years especially in the gas, petrochemical, and construction industries.

He also has extensive teaching and research experience in the fields of operations, project, and construction management. He is the primary author of three AACE recommended practices (RP 89R-16, RP92R-17, and 91R-16), and has published a variety of articles, with a focus on construction management, in scientific journals and presented his works in international conferences. He is a Professional Engineer (P.E.) and holds Project Planning and Scheduling Professional (PSP), Decision and Risk Management Professional (DRMP), and Project Management Professional (PMP) certificates.

For more information and to register, please see check out this link.

Common mistakes concerning project risks

Common mistakes concerning project risks

Posted on by Adroit

Maryam Mirhadi, Ph.D., PMP, PSP

Project risks are uncertain events or conditions that may impact a project if they occur. It is important to note that this impact may be negative or positive. As such, project risk response strategies have to be used to deal with each of the project risks. Different risk response strategies may be used depending on whether the risk is negative or positive. Negative risks pose a threat; however, positive risks are to be treated as opportunities.

A Guide to the Project Management Body of Knowledge (PMBOK® Guide) –Sixth Edition, identifies the following as the five risk response strategies that can be used for managing negative project risks: avoidance, transference, mitigation, escalation, and acceptance strategies (PMI, 2017). The following table provides a short description and example for each of these risk response strategies:

Table 1. Risk-response strategies for managing negative risks

 

The PMBOK® Guide identifies the following as the five risk response strategies that can be used for managing positive project risks: exploiting, sharing, enhancing, escalation, and acceptance strategies (PMI, 2017). The following table provides a short description and example for each of these risk response strategies:

Table 2. Risk-response strategies for managing positive risks


Some of the common mistakes concerning project risks and risk response strategies include the following:

1- Risks are always negative: In fact, not all risks are negative. Although the word risk may have a negative connotation in conversations, risks are not always negative in project management. Risk is “any uncertain event or condition that, if it occurs, has a positive or negative effect on a project’s objectives” (PMI, 2017, p. 720). As such, risks may be negative (i.e., threats) or positive (i.e., opportunities).

2- All risks need to be mitigated: In fact, not all risks need to be mitigated. First, it is important to note that mitigating is a risks response strategy only for treating negative risks. This risk response strategy is not applicable to positive risks or opportunities. In addition, although risk mitigation is one of the main risk response strategies for treating negative risks, mitigation is not the only risk response strategy that can be used for treating negative risks. As shown in Table 1– Risk-response strategies for managing negative risks– aside from mitigation, four other risk response strategies also exist that may be used in response to negative risks.

3- Risks can be certain events or conditions: In fact, certain events or conditions for which no doubt or uncertainty exists should not be treated as risks. Definite, certain events are facts, not risks. For example, in case of “having inadequate time to complete the project”, if it is known that the time needed to complete the project is inadequate, this is not a project risk, instead, it is a fact. If uncertainty is not associated with an event or condition, it cannot be considered a risk anymore. To differentiate project risks from facts and to properly name project risks, it is recommended that project management practitioners always use the cause-risk- effect format to define risks. This format can be used as follows: [uncertain event or condition] may occur due to [the cause] which may result in [the effect]. Here is an example: The contractor may incur damages due to unforeseen site conditions which may result in project delays or disputes.

4- Other mistakes: The above-mentioned mistakes were some of the key mistakes made in defining risks or risk response strategies. However, other mistakes may also be made. Some examples include not accounting for contingency reserves or devising contingency plans as part of risk response plans, not assigning role and responsibilities in managing project risks, and not treating risk management as an ongoing process that needs to be performed throughout the project lifecycle.

In sum, many mistakes are made in defining project risks and identifying risk response strategies; however, the main ones include treating all project risks as negative events or conditions with an adverse effect on the project, treating mitigation as the only risk response strategy that can be imagined, and treating definite events or conditions as risks. A proper understanding of project risks and the strategies that can be used to manage project risks is necessary to ensure risks can successfully be managed. If project risks are left unmanaged, they have the potential to force the project to deviate from its plans or fail to reach its objectives.

Reference:

Project Management Institute [PMI]. (2017). A Guide to the Project Management Body of Knowledge (PMBOK ® Guide) (6th ed.). Newton Square, PA: PMI Publications.

—

Our posts to the Insights page share fresh insights and seasoned advice about many project and construction management topics.  To have the Insights monthly newsletter delivered automatically to your email inbox, please subscribe here.