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Dubai - UAE ,
20 - Feb - 2023
10 - Day
Effective Project Risk Analysis and Management lies at the very core of successful project delivery. The systematic identification, quantification and analysis of project risks, as well as the development of detailed risk treatment strategies to mitigate all relevant risks that threaten the intended outcomes of the project, are essential to the achievement of project success.
Large capital projects often require substantial and risky investments in the acquisition, operation and maintenance of new organizational assets. Development of a sound, realistic, and carefully structured financing plan, reflecting both the initial capital expenditures required for the acquisition of the asset, as well as the operational expenditures required for the successful operation and maintenance of the asset over its anticipated productive life.
Additionally, the systematic identification, quantification and analysis of project and financial risks, as well as the development of detailed risk treatment strategies to mitigate all relevant risks that threaten the intended outcomes of the project, are essential to the achievement of project success.
This 10-day Project Risk Assessment and Financial Appraisal Program will enable delegates to apply the tools and techniques of modern project and program management, risk management and financial analysis effectively.
The important features of the 10-day Project Risk Assessment and Financial Appraisal Program are:
- Identify risk categories related to your organization’s operations and projects
- Identify project-specific risks and uncertainties related to design, planning, operation and maintenance
- Use a proven set of skills and techniques for the quantification, analysis and mitigation of identified risks, and
- Develop a systematic and dynamic Risk Management Plan
- Detailed and comprehensive appraisals of capital projects to ensure the achievement of the organization’s financial and strategic goals
- Protect the investment of the organization in capital-intensive assets
- Understand and apply the principles and methods of engineering economics
- Merge the processes of financial management, cash flow analysis and risk management to ensure profitable projects
By attending this course the 10-day Project Risk Assessment and Financial Appraisal Program, delegates will learn how to:
- Identify project-specific risks and uncertainties related to the various project phases, including the project schedule
- Use qualitative and quantitative methods to assess the exposure of the project to particular risks in real and measurable terms
- Prioritize and rank risks in order to deal with them systematically
- Apply the concept of expected monetary value to develop adequate contingency levels
- Employ the six primary risk treatment strategies to develop pro-active responses to potential risks
- Apply a dynamic risk mitigation process to reduce the risk profile in order to comply with organizational thresholds
- Apply discounted cash flow analysis to project evaluations
- Perform present and annual value calculations (NPV and EAV)
- Determine the project’s internal rate of return (IRR) as the basis for establishing the risk exposure to the organization
- Evaluate and rank various project alternatives using tools such as NPV, IRR, BCR, EAV/C
- Incorporate risk analysis into the cash flow predictions during project feasibility studies
- Consistently manage project cash flows and predict outcomes and problems that require early interventions
The 10-day Project Financial Appraisal and Risk Assessment Program is designed for all professionals responsible for or involved in project risk management, e.g.
- Project and program managers
- Project leaders & project engineers
- Production and operations engineers
- Cost engineers and financial staff
- Project planners and risk managers
- Project control and business services professionals who are responsible for or involved in securing project financing and managing cash flow on projects
Delegates on the 10-day Project Risk Assessment and Financial Appraisal Program will develop advanced project assessment, risk analysis and financial management skills and knowledge through formal and interactive learning methods. The training includes individual exercises, team projects, applicable case studies, group discussions and video material 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 at the office. Additionally, the seminar 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 project risk management.
Pre & Post course assessments will be used to measure the effectiveness of this training.
Module 1 -Fundamental Principles of Project Risk Management
Module 2 -Project Risk Analysis, Assessment & Quantification
Module 3 -Project Risk Analysis and Outcomes Modelling
Module 4 -Project Risk Strategy Development
Module 5 -Project Risk Scenario Planning & Mitigation
Module 6 -Fundamental Principles of Economic Appraisal
Module 7 - Rate of Return (IRR), Benefit-Cost Ratio (BCR) and Cost of Capital
Module 8 - Financial Project Risk Analysis and Expected Value
Module 9 - Financial Scenario Planning - Case Study
Module 10 -Financial Modeling and Project Evaluation
Day Ten deals with the essential elements of a detailed cash flow analysis, with specific attention to the various categories of cost, inflation, taxation, depreciation and interest to determine the financial feasibility of the investment over the life of the project.
- Preparing cash flow projections
- Incremental costs and benefits
- Working capital requirements and operating costs
- Forecasting Cash Flows
- How to deal with inflation
- How to deal with uncertainty and risk
- Risk premiums
- Pessimistic and optimistic forecasts
- Opportunity costs and sunk costs
- Determining the economic life of a project
- Quantifying the effects of inflation
- Effects of inflation on working capital
- Effects of inflation on taxation
- Effects of inflation on cost of capital
- Variable inflation rates over the life of the project
- Relevant cash flows over differing time horizons
- Straight-Line method
- Declining Balance method
- Interest, insurance and tax costs
- Corporation tax rates
- Taxable profit
- Capital allowances
- Incorporating tax in cash flow models
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