Advanced Project Risk Management

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by Prasad Kodukula
Price: $499.00
0 Lessons

Course Overview

Risk and uncertainty are ubiquitous in today’s organizations. They influence every major executive and managerial decision. It is paramount to understand them to achieve better decisions and successful outcomes.

The primary objective of this course is to provide you with tools to analyze the risk and uncertainty associated with numerous project activities and decisions. The tools include several spreadsheet models for project net present value, schedule and cost estimation  and  project prioritization, among others. The models focus on discounted cash flows, Monte Carlo simulations, decision trees, portfolio optimization, and so on.


Course Format

The course is presented in a workshop format involving hands-on activities. It consists of mini-lectures, interactive discussions, and team-based exercises and case studies. Quantitative methods presented in this course involve Excel based applications. You’ll receive a demonstration of how Microsoft Corporation’s Project can be used in tandem with Excel-based applications to integrate uncertainty and risk into cost and schedule estimation.

Your instructor will demonstrate each spreadsheet model using an example problem. You will learn the models through hands-on application. The class size will be limited, so that personal attention can be given to each participant in helping with the hands-on application exercises. (You are required to bring your own laptop to the classroom and encouraged—not mandatory—to download trial copies of Project and Palisade Corporation’s DecisionTools Suite, unless you already have a license for their use.) You will also receive complimentary risk analysis software with many of the models discussed in the class. The software was developed by Dr. Prasad S. Kodukula, PMP, PgMP. and his research team.



Learning Objectives

This course will help you develop skills to:

  • Recognize the importance of risk analysis in project management
  • Define uncertainty and risk
  • Differentiate project, program, and portfolio risks
  • Apply a four-step risk management process
  • Analyze uncertainty and risk using numerous quantitative methods
  • Identify various strategies to respond to risks
  • Apply various financial models including NPV, ROI, IRR, PI, etc.
  • Adjust the discount rate in accordance with the project risk
  • Understand various types of probability distributions and their importance in simulations
  • Use Monte Carlo technique for project NPV, cost and schedule estimation, among other numerous applications
  • Estimate project cost and schedule contingencies using rational techniques
  • Optimize portfolio selection using advanced deterministic and stochastic methods

You Will Receive

  • A participant guide with workshop slides, exercises and case studies
  • Electronic copies of the slides, case study exercises and exercise solutions
  • 22.5 PMI PDUs (Professional Development Units)


Course Outline: Day One – Day Three

Course Opening

  • Course objectives, outline, and agenda
  • Personal introductions
  • Ground rules

Risk Fundamentals

  • Definitions of risk and uncertainty
  • Project vs. program vs. portfolio risks
  • Four-step risk management process
  • Risk register
  • Qualitative risk analysis
  • Risk response planning
  • Tools and techniques to analyze uncertainty


Financial Modelling

  • Time value of money
  • Building blocks of financial models
  • Discounted cash flow analysis
  • NPV, ROI, IRR, PI, etc.
  • Payback period
  • Discount rate dilemma
  • Weighted average cost of capital
  • Opportunity cost
  • Hurdle rate



  • Rolling wave planning
  • Different levels of estimation
  • Cost, schedule, resources
  • Scheduling tools
  • Resource planning tools
  • Estimation of contingencies


Decision Trees

  • Expected values
  • Decision tree analysis
  • Sensitivity analysis



  • Measures of variability
  • Probability types
  • Probability rules
  • Probability distributions
  • Role of distributions in simulations
  • Monte Carlo Sampling


Applications of Monte Carlo

  • Discounted cash flow analysis
  • Project cost risk
  • Project schedule risk
  • Estimation of cost and schedule contingencies
  • Sensitivity analysis
  • Tornado diagram
  • Portfolio optimization


Decision Analysis and Tools

  • Terminology
  • Biases in decision making
  • Efficient frontier
  • Portfolio optimization with deterministic and probabilistic models
  • Weighted scoring models
  • Decision Trees


Course Closing

  • Lessons learned
  • Personal action plan
  • Course evaluations


Who Should Attend

  • Program Management Professionals (PgMP®s)
  • Project Management Professionals (PMP®s)
  • Portfolio Management Professionals (PfMP®s)
  • Portfolio Managers & Program Managers
  • Project Risk Managers
  • Project Planners & Program Managers
  • Members of project offices
  • Project Sponsors & Functional Managers
  • Team members responsible for estimation and management of project costs and schedules
  • Project analysts involved in financial modeling of project benefits and costs
  • Senior management and individuals interested in project risk management



Course features

Global Reach

Measurement of teaching effectiveness

Content Security


Corporate and Enterprise services

Mobile learning

Self-paced courses

The ability to teach full time

Easy-to-use interface

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Our virtual classes are designed to keep the same levels of engagement and networking as participants would on our on-site public courses. All course sessions are delivered through our easy-to-use online learning platform and is supplemented by case studies and practical group exercises.

Similar to our in-person public courses, you will have live interaction with course trainers and other participants. Our live online courses are led by our experienced trainers, this is done during scheduled times. All registered delegates will receive copies of the course materials electronically.

This course is scheduled to take place live online using virtual learning technology. For dates on our public courses please contact us via the chat option, phone or email.