An Intensive 5-day Training Course

Project Analysis: Tools & Techniques for Managing Risk & Uncertainty

A Detailed Examination of The Tools & Techniques
to Help Mitigate Risks in Business and Projects

INTRODUCTION TO THE COURSE

Large capital-intensive projects in all major industries require substantial - and mostly risky - investments in the acquisition, exploration, and subsequent operation and maintenance of new organizational assets.

The decision whether or not to invest in new capital projects, starts with critical decisions during the exploration phase of a new development, or the expansion of an existing field. The decision-making tools used to analyze project risk under conditions of uncertainty will help companies to determine the probability of success or loss, and will drive the decision to develop or abandon the well.

Of paramount importance therefore, is the systematic and comprehensive evaluation of potential investments, and the development of detailed cash-flow analyses to determine as accurately as possible, the expected returns to the organization under varying conditions of uncertainty over the expected productive life of the project.

This requires the development of sound, realistic, and carefully structured cash-flow projections, reflecting both the initial capital expenditures required for the acquisition of the asset, as well as the operational expenditures required for successful operation and maintenance of the asset over its anticipated productive life.

World-wide an alarming number of large capital projects fail to meet, or overrun their planned budgets, failing to realize both the financial and strategic goals of the organization - the very reason for their being undertaken in the first place - often with sizable increases in capital and operational expenditures, and with substantial financial losses to the organization. In the majority of cases, this is the inevitable consequence of failing to apply the tools and techniques of modern project decision-making, evaluation, financial planning, capital management and cash flow analysis when considering investment into new capital projects.

This KC Academy Project analysis: Tools & Technique for Managing Risk Uncertainity training course will highlight:

  • Understanding the decision-making process
  • The power of the business case
  • Financial decision-making tools
  • The importance of project risk management
  • How to identify risks during development and respond appropriately

COURSE DETAILS

Objectives Icon

OBJECTIVES

At the end of this Project analysis: Tools & Technique for Managing Risk Uncertainity training course, you will learn to:

  • Understand how to manage organization's investments in large capital-intensive projects
  • Identify how to make and understand financial decisions and be able to present these back to the stakeholder community
  • Identify how to manage the cash flow of projects and manage and appraise the financial risk mitigation strategies
  • Understand proper cash-flow and sensitivity analyses to forecast and control potential future conditions
  • Define and manage project success factors and maximize the return on the capital invested in projects
  • Understand how to define financial strategies and incorporate these into project risk mitigation strategies
Methodology Icon

TRAINING METHODOLOGY

Delegates will develop project management skills supported by financial analysis and cash flow management skills through formal and interactive learning methods. This training course includes individual exercises, team projects, applicable case studies and group discussions that will bring to life the skills acquired throughout the course.

The material has been designed to enable delegates to apply all of the material with immediate effect back in the workplace.

Additionally, this training course does not assume prior knowledge of the topics covered in the course. New concepts and tools are introduced gradually to enable delegates to progress from the fundamental to the advanced concepts of asset-based financial engineering.

Organizational Impact Icon

ORGANISATIONAL IMPACT

Application of sound project appraisal and quantification techniques will enable the organisation to:

  • Forecast and control potential future conditions that might jeopardise the chances of project success
  • Maximizing the organisation's return on capital invested in projects
  • Understand how to forecast the future based on existing information
Personal Impact Icon

PERSONAL IMPACT

In attending this training course, delegates can expect to gain the following benefits:

  • Enhance their understanding of the time value of money, as well as learn how to use the basic tools of financial engineering such as Net Present Value (NPV), Internal Rate of Return (IRR), and annual worth calculations
  • Learn how to evaluate and compare various alternative solutions over differing time horizons
  • Detailed explanations of the tools and techniques to determine and continuously monitor project feasibility, will enable participants to select projects with the best capital investment potential
  • Learn how to identify, plan, structure and manage risks to the overall delivery of projects – A powerful forecasting and control element leading to project success
Target Audience Icon

WHO SHOULD ATTEND?

This Project Analysis training course is designed for programme and project management professionals, project leaders, project engineers, cost engineers, and other senior project control and business services professionals who are responsible for or involved in evaluating projects and managing cash flow throughout the duration of project delivery.

DAILY AGENDA

DAY 1: Fundamentals of Decision Analysis: Measures of Project Profitability
  • Fundamental tools of engineering economics
  • Time value of money
  • Appraisal methods - Discounted Cash Flow Projections
  • Time equivalence
DAY 2: Cash-Flow Modelling and Project Decision Analysis: Analysing Project Specifics
  • Understanding the project context to assist in decision-making
  • Determine stakeholders and their level of influence
  • Capture requirements
  • Determine scope of work
DAY 3: The Cost of Capital: Risk Modelling in Practice
  • Identify Risks
  • Forecasting risk impacts & probabilities
  • Opportunity costs, sunk costs & salvage value of a project
  • Determining the Risk Priorities
  • The need for company cash flow
DAY 4: Decision Analysis: Expected Value Concept
  • Basic Probability ConceptsFundamental probability concepts
  • Mutually & non-mutually exclusive, independent events
  • Quantitative Project Risk AnalysisSemi-quantitative bow-tie process
  • Detailed risk quantification and prioritisation
  • Expected monetary value
  • Scenario planning
  • Sensitivity Analysis ToolsSimulation process
  • Tornado diagram
  • Defining the variables - PERT
DAY 5: Decision Trees, EMV, Risk Responses and ROI
  • Decision Tree AnalysisDeveloping decision trees
  • Solving decision trees
  • Risk ResponsesDeveloping risk responses
  • Evaluating response relevance
  • ROI AnalysisUnderstanding ROI
  • Identifying ROI
  • Evaluating and presenting your project options
Objectives Icon

Certificate

On successful completion of this training course, KC ACademy Certificate will be awarded to the delegates

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FREQUENTLY ASKED QUESTIONS

This FAQ section provides quick answers to the most common questions about our services, procedures, and policies. We aim to make your experience with us as straightforward as possible. For further assistance, our support team is ready to help.

Are there prerequisites or language requirements?

There are no prerequisites. Our courses are open to students of all backgrounds who are 18 years of age and older. All courses are conducted in English. Video lectures include English subtitles and the option to slow-down, pause, or replay lectures for better retention. Discussion boards are a critical component of each of our courses; therefore, we suggest students have a conversational knowledge of English when pursuing a Certificate of Completion. For any of the art writing courses, students need to be 100% proficient in written English.

How many students are in a course? Who will be my classmates?

Our classes are kept small, at no more than 30 students, to better facilitate and encourage personalized interaction with the instructor and fellow participants. Your classmates come from all over the globe and contribute their global perspectives and experience. Some are currently working within the arts while others are just beginning. All classmates share in their passion for the art world.

Do I need specific equipment to take Online Courses?

You should have an up-to-date web browser such as: Chrome, Safari, Firefox, or Internet Explorer. For more detailed information, please see the guides for supported browsers and basic computer specifications. Our Online Courses can be accessed on a mobile or tablet device, although we strongly encourage you to have access to a desktop or laptop computer and reliable internet connection for certain course components. Former students have told us it is easiest to read discussion threads and complete written assignments on a laptop or desktop computer.

How can I register?

You can register for a KC Academy training course by visiting our website, selecting the course of your choice, and following the simple registration process. You can also contact our support team for assistance with the registration process.

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