Course Description:
Risk management is the structured, disciplined approach to dealing with unknown events and how they can affect project performance. This course includes a review of the basic components of risk: probability of an event and the consequences of the event. The core elements of probability theory are reviewed, as are the basic components of estimation theory. Risk management is assessed from its basic steps: risk identification, risk impact analysis, risk response planning, risk monitoring and control, and planning. Risk modeling, using Monte Carlo simulation, will be fully discussed. Case studies will illustrate how risk management is successfully used in a variety of fields. Project management applications are reviewed to show how risk management improves project performance as measured by reduced cost overruns and schedule delays and how quality and safety issues can be improved by application of risk management techniques.

Course Objectives:
At the completion of the course, a successful student will be able to:

• Identify the basic components of risk and a risk management plan.
• Describe the core elements of probability and estimation theory.
• Describe how risk management improves project performance.

Course Prerequisites:
Project Management Fundamentals or permission of the instructor.