Summary Record of the
Training Workshop on “Project Risk Management”
Conducted by
Islamic Research and Training Institute (IRTI)
In joint cooperation with
Economic Cooperation Organization (ECO)
4-5 March 2012, ECO Secretariat, Tehran
The Secretariat of Economic Cooperation Organization,
No.1, Golbou Alley, Kamranieh, Tehran,I.R. Iran – P.O. Box No. 14155-6176,
Tel: + (98-21) 22831733-4 or 22292066 Fax: + (98-21) 22831732
E-mail: registry@ecosecretariat.org Website: www.ecosecretariat.org
Report of the
Training Workshop on “Project Risk Management”
4-5 March 2012, ECO Secretariat, Tehran
1. Introduction
The Training Workshop on “Project Risk Management” was held on 4-5 March
2012 at the ECO Secretariat. It was conducted by the Islamic Research and Training
Institute (IRTI), member of the Islamic Development Bank Group (IDB).
The main objective of this training workshop was to provide an in-depth
knowledge on project management systems and implementation. All ECO
Secretariat's staff involved in the project implementation has participated in the
workshop. List of participants is attached as Annex-I.
Mr. Altaf Asghar, ECO Deputy Secretary General inaugurated the event. While
appreciating IRTI’s active cooperation with ECO on implementation of capacity
building programme, he expressed the hope for conducting a successful workshop.
2. Background information
The need to strengthen project implementation capacity of the ECO Secretariat
as well as of project management units in implementing agencies in Project
Coordinating Countries of the ECO has continually been on the agenda of the
Organization.
To achieve the above objective, the first training workshop on “Project
Management Framework” was organized by the ECO Secretariat in collaboration with
the United Nations Development Programme (UNDP) during 24-25 February 2010 in
the ECO Secretariat. The training workshop was on standard project management
principles and techniques based on the UN adopted “PRINCE2” project framework.
The ECO Secretariat staff involved in project implementation had participated in the
training and received basic knowledge of standard project management principles,
linkages between strategic framework and project management systems, and strategic
frameworks that support both, project management and project planning.
To continue regular training of the ECO Staff with the aim to enhance project
implementation in the ECO, the second training workshop was organized in
collaboration with the Islamic Research and Training Institute (IRTI) in the premises
of the ECO Secretariat.
3. Purpose of the Workshop
The training workshop aimed at providing essential knowledge on managing
risks associated with project implementation of which one has been identified as
project delays. Training focused on relevance of use of modern IT tools, techniques,
approaches, policies, project software implementation incentives. The linkage
between inattention of project risks and thereby the potential encounter of project
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delays at output, as one of such unattended risks, has been in the specific focus of the
training event.
4. Structure and Time Schedule of the Training Workshop
The Training Workshop was structured as two-day training process
implemented through three daily sessions. Presentations on theory were followed by
case studies excerpted out of IDB projects which have been recently implemented in
the region. In order to have a better understanding of project risk management process
from practical view, in the course of the training exercise the risk matrix was
developed for one of the ECO projects. A copy of the time schedule of the training
workshop is attached as Annex-II.
5. Thematical Content of the Training Workshop
The content of the training workshop was delivered by the speaker in the form
of power-point presentations in five parts as follows:
I.
Presentation 1: Project Risk Management
The first part of presentations covered the following subjects:
- Definition of Risks
- Risk Management Systems and their components
- Roots of uncertainty
- Types of Risks (Business Risk vs Financial risk)
- Risk Management Process: defining the main steps of this process and
introducing different approaches currently being used by international
organizations
- Risk Management Principles based on the ISO recommendations for Risk
management
- Project Life Cycle: clarifying eight steps of this cycle (Conceive, Design,
Plan, Allocate, Execute, Deliver, Review, Support)
- Risk Matrix as a tool for Project Risk Management
- Steps for establishing the Risk Matrix:
 Step 1: Identify tasks with risks
 Step 2: Describe Risk
 Step 3: Determine impacts
 Step 4: Estimate chance/probability of risk event
 Step 5: Rank risk by severity
 Step 6: Identify root-cause
 Step 7: Prepare contingency plan
 Step 8: Estimate schedule impacts using MS Project software
 Step 9: Incorporate risk in schedules and establish buffers
 Step 10: Identify triggers for applying buffers
A copy of Presentation 1 is attached as Annex-III.
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II.
Presentation 2: Risk Management in IDB
-
The second presentation focused on the project risk management in IDB and
establishment of Risk Management Office in the organization structure of
IDB. It discussed the following subjects:
The Concept of Risk Management
Risk Management Governance in IDB
Risk Management Office (RMO) in IDB
Organization Structure of RMO
Risk Management Strategy of RMO
Main Functions and Objectives of RMO
Main Risk Management Guidelines developed by RMO, introducing IDB
Guidelines in the following areas:
 Guidelines for Country Risk Assessment
 Guidelines for Evaluating Banks for the acceptance of guarantees and
for placement of liquid funds
 Guidelines for Project Finance
 Guidelines for Corporate Finance and Guarantee
 Guidelines for the acceptance of assignment of receivables
 Best business practices and customer due diligence standards
A copy of Presentation 2 is attached as Annex-IV.
III. Presentation 3: Risk governance
The next presentation mainly discussed on governance of risks with the following
topics:
- Risk Governance System
- Risk Approach to Investment Lending
- Bank Risk Management System
- Operational Risk Assessment Framework
- Risk Governance Framework
- Risk-Based Approach to Preparation and Implementation Support
- Various types of risks
- Balanced Risk Management Approach
- Level of Risk Management
- Risk Management Milestones
- Risk Identification
A copy of Presentation 3 is attached as Annex-V.
IV.
Presentation 4: Case Study 1
The Risk Matrix for one of the IDB projects, recently implemented in Iran,
was presented as a case study of the training workshop. A copy of
Presentation 4 is attached as Annex-VI.
V.
Presentation 5: Case Study 2
The second case study was reviewed based on one of the IDB projects
reflecting the subject matter of defining the Risk Matrix of the project in details.
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In the concluding session of the workshop, preparation of the Risk Matrix was
practiced by trainees for one of the ECO projects as a practical hand on
exercise of the workshop. A copy of Presentation 5 is attached as Annex-VII.
6. Training Mode of the Workshop
The Training Workshop was conducted through power-point presentations in
five parts as described above. The required reference literature was prepared and
distributed by the speaker as a useful guide in the subject for participants. The IDB
Project Risk Management Guidelines were provided to participants, introducing the
procedure established in IDB for project risk management. A copy of the list of the
required literature for training and guidelines are attached as Annex-VIII, Annex-IX,
Annex-X and Annex-XI.
7. Speaker of the Training Workshop
The training materials were presented by Mr. Shehzad Akram, Senior Water
Sector Specialist, Water Resource & Environment Division of the Islamic
Development Bank (IDB). A copy of his resume is attached as Annex-XII.
8. Closing Ceremony
During the closing ceremony, Mr. Fatih Unlu, the ECO Deputy Secretary
General and Officer in Charge of the Organization, in his statement, thanked the IRTI
for its joint cooperation and assistance to ECO in enhancing implementation capacity
of staff involved in projects and programme of the Organization through conducting
the training workshop on Project Risk Management. He highlighted the impact of the
training workshop on considerable improvement of knowledge and insight of ECO
staff on project implementation and also, on the effectiveness of inter-institutional
coordination of implementation of ECO projects in the region.
9. Expected Outcomes of the Training Course
During the concluding session of the workshop, a Feedback Form was
distributed to participants to receive their views and proposals on the topic and
content of the workshop. A copy of Feedback Form is attached as Annex-XIII.
Results of Feedback Forms completed by participants indicate the followings:
1.
Participants have expressed their satisfaction with organizing the
workshop and evaluated it as useful. For more effective conducting of
the future training workshops, however, some suggestions have been
proposed modify the methodology of the workshop through training on
based on case studies which could be based on ECO projects.
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2.
Most participants have stated that the training workshop has been either
entirely or relatively relevant to their practical project works. , or.
3.
57% of respondents have indicated that duration and time of the training
workshop has been appropriate, while 43% commented that it was
short.
4.
The following topics were proposed by respondents for training course
in future :
 Development of a project proposal (initiation)
 Project management through project cycle, including planning,
financing, monitoring and implementing
 Application of project management software system
 Project initiation based on ownership of ECO countries
 Decision making process through risk analyses
 Merger of the content of the two training workshops organized
by the Secretariat, i.e. Project Management Framework and
Project Risk Management and implementation of principles and
contents of those courses in actual project management in the
Secretariat
5.
All participants wished that the next training workshop be organized by
the Secretariat and proposed the second half of the current year, 2012,
for this matter.
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