Risk Mgt Ms-1303-09-01.pptVIP

刘强博士 中国海洋大学 Risk Management and its Applications March 13 2009 Post-Graduate In the world of risks, the master of risk is to distinguish the past to modern times. Murphys law is an adage in Western culture that broadly states: Anything that can go wrong will go wrong.“ Introduction Madoff 50billion USD Loss Anything that can go wrong will go wrong Risk is a concept that denotes the precise probability of specific eventualities. Technically, the notion of risk is independent from the notion of value and, as such, eventualities may have both beneficial and adverse consequences. However, in general usage the convention is to focus only on potential negative impact to some characteristic of value that may arise from a future event. A life without risk will be too boring, to many risks would make a life too short. The biggest risk in life is not taking risk. What is Risk and Risk management In this course, the nature of risk and risk management will be introduced, especially risks in context with engineering projects This is a course on how companies and project managers make use of the insights and tools of risk management. The focus is on how corporations use the insights and models to improve their project operations, to increase the value of their projects in terms of safety, cost, schedule and quality, or to create the financial flexibility necessary to implement their core strategy. We are also going to deal with a real international project executed by a Chinese company abroad and discuss the results in a class-room workshop. Course Objective There are many types of risk management going on in different parts of a project or a company at the same time. The most familiar place of risk management is Engineering, procurement and Construction. But many other parts of the Company are involved in risk management. The marketing department designs types of contracts for customers that share risk. Business unit managers evaluate projects with different risk char