Commercial Risk Management Training
- Commercial Risk Management Training.
- Setting the scene with a real project video.
- Understanding the nature of risk and its origins.
- Identifying commercial, legal, estimating, financial, and contracting risks.
- Analyzing risks through categorization and quantification.
- Managing risks using the Project Management Model.
Overview
The Commercial Risk Management Training course aims to provide participants with a comprehensive understanding of commercial risk in project environments. The course covers topics such as the nature of risk, identifying risks (commercial, legal, estimating, financial, contracting, and execution risks), analyzing risks, and managing risks using the Project Management Model. Through interactive exercises, case studies, and lectures, participants will learn to categorize, quantify, and handle risks effectively. The course duration is 2 days.
Who should attend
Bidders, Lawyers, Estimators, Financial Analysts, Contractors
Course Content
Commercial Risk Management Training
1. SETTING THE SCENE
A video of a real project illustrating the attitude of the various parties to the risks involved in a project and the commercial implications.
2. THE NATURE OF RISK
Origins of Risk and the Risk Process.
3. IDENTIFYING RISKS
3.1 COMMERCIAL RISK
The Client’s Process for Selecting Bidders.
An exercise involving in identifying the bidding risks associated with an enquiry.
Enquiry Exercise by Fax.
3.2 LEGAL RISKS:
An intensive introductory lecture on the use of law in a commercial environment. Covering legal systems and processes, how contracts are constructed, the vital elements of a contract
– Definition of a contract. Offer & acceptance, consideration, intention and capacity.
– Discharge of a contract. Agreement, performance, breach, frustration, express contract terms etc.
– Liability & Claims.
A case study in the application of contract law to determine if a contract has been agreed. The risks involved in the battle of the forms.
An interactive session where typical FIDIC contract terms will be used to evaluate how the Client or Contractor should react to a series of problems on a project.
3.3 ESTIMATING RISKS:
Estimating case study describing the methods used by the various departments of a company to prepare an estimate.
- Using the correct estimating technique.
- Uses of different types of estimates.
- Cost / Profit / Price
3.4 FINANCIAL RISKS:
- Identify the importance of cash flow in the appraisal of projects.- Payback – Average Rate of Return and NPV. – Exercise.
- A number of mini cases which will illustrate the risks involved in the payment terms.
3.5 CONTRACTING RISKS:
An explanation of the basic forms of contract which will then be applied to a number of mini cases. The cases are designed to illustrate contracting relationships and the risks involved. The delegates will decide on the optimum contracting arrangement from both a Buyers (Client) and Sellers (Contractors) perspective.
3.6 EXECUTION RISKS:
An Olympics Case Study: A case study to illustrate the nature of different risks inherent in a project. The delegates will work in syndicates to identify as many risks as possible.
4. ANALYSING RISKS
- Categorising and Quantifying Risks.
- Brief exercise in determining different options for handling risks.
5. MANAGING RISKS
The use of the Project Management Model as a dynamic and interactive model of Project Risk Management.
Duration:2 Days
Cost:£595 + VAT
