D4: Introduction to Risk and Decision Management (DRM)

Wednesday - Thursday, June 19-20, 2019 (1.5 days)
1.2 CEU

StevenWWageman_30-Nov-18Instructor: Steven W. Wageman, CCP CEP EVP PSP
Steve Wageman possesses nearly 40 years of management experience, and has consulted to many different organizations and industries such as the Department of Energy, Boeing, and the US Army Corps of Engineers. He previously served as the Risk Engineering Program Manager for the transit authority in Seattle, WA, where he was responsible for risk management and analysis on a $72B portfolio of capital projects. Steve is currently working on risk teams for several large national defense programs at Sandia National Laboratories. He is a Certified Cost Professional (CCP), Certified Estimating Professional (CEP), Earned Value Professional (EVP), and Planning and Scheduling Professional (PSP) through AACE International, a Project Management Professional and Risk Management Professional through the Project Management Institute, and a Certified Professional Classroom Trainer through CompTIA. Steve was previously an Authorized Primavera Instructor through Oracle Corporation, and is also a graduate of the Stanford University Strategic Decision and Risk Management Certificate Program.

This one-and-a-half-day introduction to risk and decision management will equip participants with the basic knowledge and skills required to perform qualitative risk management and general decision support within a project context. The topics will include risk management planning and governance; risk factor identification, framing, and categorization using various elicitation techniques and risk workshops; perceptive and cognitive biases; qualitative risk factor assessment and prioritization; risk factor response planning; risk factor monitoring, response, and control; basic descriptive statistics and probability; basic quantitative risk analysis; and basic decision management including decision quality and quantitative decision analysis.

This course is intended for risk managers and analysts; executives; business unit managers; project, program, and portfolio managers; project controllers; planners and schedulers; cost estimators; cost engineers; cost, budget, and financial analysts; and accountants who are interested in gaining a comprehensive working knowledge of current professional practices in risk and decision management. Attendees should possess an understanding of basic project management concepts such as scope, schedule, and cost planning, execution, and control in order to gain the greatest benefit from this course.

Content:  Intermediate

Learning Objectives
• Define key terms related to risk management
• Contrast project risk management to other risk-based disciplines
• Discuss the purpose and components of project risk management
• Describe the processes and components of project risk management planning
• Explain the key components of risk governance and the role of a risk review board
• Identify, frame, and categorize project risk factors using various methodologies
• Describe various perceptive and cognitive biases that can affect the quality of risk factor information
• Qualitatively assess project risk factors by evaluating their probability of occurrence, impact, and immediacy
• Prioritize a project's qualitatively assessed risk factors
• Plan responses for risk factor threats and opportunities
• Monitor the risk environment and the project's performance for risk factor trigger events and other changes
• Respond to risk factors with planned corrective actions
• Respond to unknown or accepted risk factors with workarounds or fallback plans
• Evaluate implemented responses for effectiveness and to collect lessons-learned
• Document and communicate risk management results to relevant project stakeholders
• Utilize basic statistical methods to analyze descriptive data
• Utilize basic probability methods to analyze descriptive data
• Explain the basic principles and purposes of quantitative risk analysis
• Distinguish between a decision's quality and its outcome
• Evaluate the quality of a decision by assessing if it has an appropriate frame, creative and viable alternatives, meaningful and reliable information, clear values and tradeoffs, logical reasoning, and commitment to action
• Apply basic decision analysis tools such as sensitivity analysis and decision trees to quantitatively assess and select decision alternatives under conditions of uncertainty

Knowledge Areas Addressed

• Risk Management Planning
• Qualitative Risk Assessment
• Quantitative Risk Analysis
• Risk Mitigation
• Statistics and Probability
• Decision Quality and Analysis

A handheld calculator with business and statistical functions will be useful.


Day 1
1:00-1:15  Student Introductions, Class Administration, and Introduction to the Case Study
1:15-2:00  Introduction to Project Risk and Decision Management
2:00-2:30  Project Risk Management Planning
2:30-2:45  Break
2:45-3:15  Risk Governance and Risk Review Boards
3:15-4:45  Risk Factor Identification Methodologies, Framing, and Categorization
4:45-5:00  Day Summary

Day 2
8:00-8:15     Review, Questions, and Answers
8:15-9:45     Perceptive and Cognitive Biases
9:45-10:00   Break
10:00-11:00 Qualitative Risk Factor Assessment and Prioritization
11:00-12:00 Risk Factor Response Planning
12:00-1:00   Lunch
1:00-2:00     Risk Factor Monitoring, Response, and Control
2:00-2:30     Basic Concepts of Descriptive Statistics and Probability
2:30-2:45     Break
2:45-3:15     Introduction to Quantitative Risk Analysis
3:15-4:45     Introduction to Decision-Making under Uncertainty (Decision Quality & Analysis)
4:45-5:00     Course Summary

$1050 member / $1200 non-member

NOTE: Add $100 if you are not staying at the host hotel. Book your room before registering for the seminar to lock-in the rate listed above. Add $100 for on-site registration. Seminar is subject to cancellation if minimum enrollment is not met 30 days prior. 

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