An Intensive 10-day Training Course

The 10-Day Advanced Project Economics & Risk Management

Improve Decision-making and Increase Investment Effectiveness

Modules

This course is split in two modules:

Module 1: Project Analysis: Tools & Techniques for Managing Risk & Uncertainty
Module 2: 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.

Course 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

  • 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
  • Rate of Return Computations (IRR)
  • Determining the Internal Rate of Return (IRR)
  • The Risk of not understanding IRR

  • 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

  • Identify Risks
  • Forecasting Risk Impacts & Probabilities
  • Opportunity Costs, Sunk Costs & Salvage Value of a Project
  • Determining the Risk Priorities
  • The Need for the Company Cash Flow

Day 4

Decision Analysis: Expected Value Concept

  • Basic Probability Concepts
    • Fundamental Probability Concepts
    • Mutually & Non- Mutually Exclusive, Independent Events
  • Qualitative Project Risk Analysis
    • Semi-Quantitative Bow-Tie Process
    • Detailed Risk Qualification 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

 

Certificate

Oxford Management Centre Certificate will be provided to delegates who successfully completed the training course.

Accreditation

NASBA

In association with

GLOMACS Training & Consultancy

GLOMACS Training & Consultancy

Visit website

KC Academy

KC Academy

Visit website

PetroKnowledge

PetroKnowledge

Visit website

Course image
Duration
10 Days
Format
Classroom
Language
English
Certificate
Yes
Choose the date and location that suits you:
Classroom Sessions
Dubai
08-19 Sep 2025
Fee: $11,900
Book your place
London
10-21 Nov 2025
Fee: $11,900
Book your place


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