The primary objectives of this CDGA Advanced Project Economics, Risk & Decision Analysis training course are to:

• Learn how to handle uncertainty in projects
• Understand different economic terms
• Understand the expected value concept and learn its impact on decision tree analysis
• Learn expected theory concepts and attitudes towards risk, risk eversion and risk premium
• Acquire spreadsheet skills including simulation software @RISK
• Carry out cashflow analysis for project and use common economic indicators to evaluate between competing alternatives
• Carry out a comprehensive economic study evaluating projects using risk and sensitivity analysis by means of spreadsheets

This CDGA Advanced Project Economics, Risk & Decision Analysis training course is suitable to a wide range of professionals but will greatly benefit:

• Planning Managers
• Project Managers
• Analysts
• Commercial Managers
• Economists
• Government Officials
• Business Advisors
• Asset Managers
• Product Managers
• Project Management Professionals

Day 1

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 2

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 3

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 4

Setting-up Spreadsheet Calculations Using Excel

• Spreadsheet Calculations
• Cashflow analysis
• Sensitivity analysis calculations
• Tornado diagrams
• Introduction to Monte Carlo simulations using @Risk

Day 5

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

After completing the course, participants will receive a CDGA completion certificate.