Project Risk Management
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: the 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 recovery. Risk modeling, using Monte Carlo simulation, is fully discussed. Throughout the course, students study case studies that 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, as well as how quality and safety issues can be improved by applying risk management techniques. Coursework aligns with the Project Management Institute’s Practice Standard for Project Risk Management.