Formalized and Systematic Risk Management Process for Complex Projects with Esra Tepeli
What You Will Learn
Upon completion of this training, learners will be able to:
- Develop a formalized and systematic risk management process throughout the project life cycle.
- Plan a multidimensional project analysis for identifying and assessing the risk and opportunity events for complex projects, proposing response planning.
- Demonstrate integration of project management, risk management, and decision-making processes in a systematic approach, adapted to the evolving nature of complex projects.
Project risks can have negative impacts on project objectives such as delays, cost overruns, decrease in quality and security aspects, then we can observe serious project failures. Complex projects are affected by numerous risks and opportunities because of their complex organizational plan with many stakeholders, complex planning with a long-life cycle, complex resource management, contractual complexities, technical issues, and environmental factors. This type of projects may also present strategic importance for the project stakeholders.
Risk management aims to identify possible causes of threats and opportunities, assess them qualitatively and quantitatively and propose action plans for risks deemed critical in order to decrease the undesirable effects on project objectives. For complex projects, risk management is a difficult task, depending on the project’s characteristics and environmental conditions, and the feedback on similar risks can be inadequate. It is essential to identify and analyze the project risks and opportunities throughout the project life cycle and develop risk response planning to decrease the adverse risk effects. However, traditional methods are rather limited for managing the risks of complex and strategic projects.
In this training, a formalized and systematic Risk Management Process is proposed for complex and strategic projects throughout the project life cycle. This process aims to identify systematically the risks and opportunities, assess the risk impacts in terms of cost, delay, quality, and safety, determine the critical risks and develop action plans in order to mitigate, eliminate or transfer the negative risk impacts. The process proposes an agile risk management approach in parallel with the project management, through the project life cycle, and adapted to the evolving nature of the project. The risk assessment results are integrated into the project simulation with cost, time, quality and safety risk impacts. An objective and reliable risk identification and assessment method is provided with multi-dimensional project analysis, associated with the project planning, organizational structure, resources, and environmental factors. The risk identification and assessment data are updated with the project progress in a dynamic approach.
The model is designed and developed based on several case studies of complex projects, in partnership with the project practitioners to favor its use in real operation conditions and to ensure its efficiency by integrating the different perspectives of the project stakeholders. Besides, the viewpoints of a wide range of experts from all the major players in complex and strategic projects have also been considered for an effective risk management method. A user-friendly prototype interface has been developed to apply the process for real projects. The process is primarily developed for complex construction projects, but the model can be adapted to a specific type of complex and strategic project in different sectors. How it works in practice is illustrated through a case study of a Public-Private-Partnership (PPP) project in France.
- Analysis of complex projects and Project Management & Risk Management Principles
- Analysis of complex projects
- Life cycle, project planning features
- Project stakeholders and organizational features
- Resource management
- External and internal environmental factors
- Project management and risk management keys and strategies
- Strategic importance and strategic analysis
- Decision-making keys and strategies
- Success keys for reaching project objectives
- Risk management objectives in a complex project environment
- Conventional or traditional Risk Management Methods
- Existing or conventional risk management processes; principles, methods, tools for identification, assessment, mitigation of risks
- Analysis of advantages, disadvantages and limits in application to complex projects
- Need of a formalized and systematic risk management approach in a complex project environment to:
- Integrate the risk management into a formalized and systematic process
- Achieve an effective risk management in parallel with the project management and adapted to project life cycle
- Achieve a consistent risk identification, risk assessment and analysis, an optimal risk allocation and risk response planning through all the project life cycle
- Combine strategic decision-making and risk management in a systematic process,
- Introduce a dynamic vision of risk management adapted to the evolving nature of a complex project
- Group discussions
- Development of a formalized and systematic risk management process for complex and strategic projects
- Presentation of the architecture or general model of the formalized and systematic risk management process
- Analysis of the project complexity and strategic importance
- Analysis of the project environmental factors and their effects on the project
- Multi-dimensional analysis of the project features related to organizational management, time management, resource management, contract management and their relationships
- Development of the Multi-dimensional Modeling of Risk Management Process (MMRMP):
- Identification of risk and opportunity events for all the project life cycle
- Assessment of risk events with qualitative and quantitative probability and impact analysis
- Evaluation of the progressive risk level of the project throughout the project life- cycle
- Proposition of risk responses
- Combination of project management, risk management and decision-making processes
- Project simulation integrating risk evaluation results with time, cost, quality and security aspects in a dynamic structure
- Implementation of the Multi-dimensional Modeling of Risk Management Process (MMRMP) through an operational tool:
- Analysis of the project complexity
- Strategic analysis and decision-making
- Project analysis
- Risk and opportunity identification, analysis, risk response planning
- Iterative risk and project simulation
- Application of the process on the case studies of complex and strategic projects
- Conclusion and group discussions
PDU Allocation Table
|Ways of Working||Power Skills||Business Acumen||Total|
|CAPM® / PMI-CP™ / PMP® / PgMP®||7||3||4||14.00|
|PMI-ACP® / Agile*||0||3||4||7.00|