A Project Management Institute, Inc. (PMI)®Registered Training Course
The 10-Day Advanced Project Economics & Risk Management
Improve Decision-making and Increase Investment Effectiveness
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Modules
This training course is split into two modules:
Module I - Project Analysis : Tools & Techniques for Managing Risk & Uncertainty
Module II - Advanced Project Economics, Risk & Decision Analysis
Each module is structured and can be taken as a stand-alone training course; however, delegates will maximise their benefits by taking Module 1 and 2 back-to-back as a 2-week training course.
Training Outline
Module 1: Project Analysis : Tools & Techniques for Managing Risk & Uncertainty
DAY 1: Fundamentals of Decision Analysis
- What is project management decision analysis?
- The purpose of the project business case
- The need for systematic risk management for decision-making
- Risk and uncertainty on projects
- Option analysis
- Identifying key decision-making factors
Measures of Project Profitability
- Fundamental tools of engineering economics
- Time value of money
- Appraisal methods - Discounted Cash Flow Projections
- Time equivalence
DAY 2: Cash-Flow Modelling and Project Decision Analysis
- Financial Modelling and Project Evaluation
- Internal Rate of Return computations (IRR)
- Determining the Internal Rate of Return (IRR)
- The risk of not understanding IRR
Analysing Project Specifics
- Understanding the project context to assist in decision-making
- Determine stakeholders and their level of influence
- Capture requirements
- Determine scope of work
DAY 3: The Cost of Capital
- Capital & Operating Expenditures (CAPEX / OPEX)
- Estimating the cost of capital for a project
- Benefit-Cost Ratio (BCR)
- Dis-benefits
Risk Modelling in Practice
- Identify Risks
- Forecasting risk impacts & probabilities
- Opportunity costs, sunk costs & salvage value of a project
- Determining the Risk Priorities
- The need for company cash flow
DAY 4: Decision Analysis: Expected Value Concept
- Basic Probability Concepts
- Fundamental probability concepts
- Mutually & non-mutually exclusive, independent events
- Quantitative Project Risk Analysis
- Semi-quantitative bow-tie process
- Detailed risk quantification and prioritisation
- Expected monetary value
- Scenario planning
- Sensitivity Analysis Tools
- Simulation process
- Tornado diagram
- Defining the variables - PERT
DAY 5: Decision Trees, EMV, Risk Responses and ROI
- Decision Tree Analysis
- Developing decision trees
- Solving decision trees
- Risk Responses
- Developing risk responses
- Evaluating response relevance
- ROI Analysis
- Understanding ROI
- Identifying ROI
- Evaluating and presenting your project options
Module 2: Advanced Project Economics, Risk & Decision Analysis
DAY 6: Development Economics
- A brief history of energy usage
- Principles of development economics
- Understanding of economic terms
- Inflation and its impact on nominal & real cashflows
- Project financing
DAY 7: Uncertainty in Investments
- Handling uncertainty in capital projects
- Understanding probability concepts
- The expected value concept: features and pitfalls
- Expected Monetary Value (EMV)
- Expected Profitability Index (EPI)
- Expected Opportunity Loss (EOL)
DAY 8: Risks and Uncertainties
- Risk & uncertainty
- Risk aversion and risk premium
- Exploration project threats and opportunities
- Economic decision criteria
- Decision tree analysis
- Probability distribution
- Monte Carlo simulation
DAY 9: Setting-up Spreadsheet Calculations Using Excel
- Spreadsheet Calculations
- Cashflow analysis
- Sensitivity analysis calculations
- Tornado diagrams
- Introduction to Monte Carlo simulations using @Risk
DAY 10: Practical Use of the @Risk add-on
- Developing an integrated economic model
- Developing and using an @Risk Model Analysis
- Project sensitivity analysis utilizing data from @Risk Model
- Training course final review and close
Certificates
- On successful completion of this training course, GLOMACS Certificate with eligible Continuing Professional Education credits (CPE) from National Registry of CPE Sponsor and Professional Development Units (PDUs) / Contact Hours from Project Management Institute (PMI®), will be awarded to the delegates
Accreditation
GLOMACS is proud to be an Authorized Training Partner (ATP No. 2759) with PMI®. As an ATP, GLOMACS is authorized to issue applicable Professional Development Units (PDUs) and Educational Contact Hours to participants of any of its PMI® approved training courses for PMI® Certification and Re-Certification.
GLOMACS is registered with NASBA as a sponsor of Continuing Professional Education (CPE) on the National Registry of CPE Sponsors. NASBA have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.learningmarket.org.
All Training Seminars delivered by GLOMACS by default are eligible for CPE Credit.
Providers and Associations
About Saudi Glomacs
At Saudi GLOMACS, we specialize in delivering world-class training courses in Saudi Arabia and across various international locations. Our training courses are tailored to meet the unique demands of Saudi Vision 2030 and the Human Capability Development Program, focusing on empowering Saudi citizens and enhancing workforce skills. We offer diverse courses spanning leadership, management, engineering, and technical disciplines to cultivate expertise and drive professional growth. Our flexible learning options—whether in-person, online, or in-house—ensure accessibility and convenience for individuals and organizations alike.
With over 30+ years of experience through the GLOMACS global network, we are committed to delivering innovative, results-driven training solutions. Our expert instructors combine industry knowledge with dynamic teaching methods, fostering practical skill development and long-term career success. By choosing Saudi GLOMACS, you're investing in personal excellence and contributing to the Kingdom’s sustainable economic growth and vision-driven transformation.
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