This course will cover how a project price is structured and managed for risk.  It allows participants to frame project decisions in the language and perspectives of project leaders.

It will include an overview of:

• Project economics and the time value of money - how economic metrics including Net Present Value (NPV), Internal Rate of Return (IRR), Return on Investment (ROI) and payback periods are used to evaluate projects;
• How confidence intervals can used to estimate the project’s likelihood of achieving budget - probabilistic (Monte Carlo) and Bayesian methods for uncertainty, event-chain, options and contingency analysis;
• Sensitivity analysis and robustness - how sensitivity and uncertainty is evaluated by adjusting key values in financial models;
• An introduction to project financing structures and accounting definitions - how to structure projects to incorporate flexibility and extract greater value; key design features and required projections of robust and credible financial models
• Project governance, gating and budget approvals - how gating manages risk and provides opportunities for oversight;
• How to manage the planning and sunk cost fallacies, and other biases that can lead to poor project decisions;
• How budget estimates can be ‘reality-checked’ using reference-class forecasting unconscious bias and strategic misrepresentation; and
• Further opportunities to develop as a project professional.