Assessment of Risk Management Practice for Project Success: The-Case of Core Banking System Replacement Project In Wegagen Bank Sh.Co.
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Date
2021-07-13
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Addis Ababa University
Abstract
If risk is not managed properly it can be one factor to hinder success of a project and even it may
lead to project failure. The objective of this study is to show the application of proper risk
management practice is vital for project success. The specific objectives of the study is to assess
the effective risk management practice by taking the core banking system implementation
project of Wegagen Bank Sh.Co. as a case. The study detected the important risk management
elements missed during the implementation of core banking system replacement project of the
bank. The purpose of this study is to assess the project risk management practice during the
Bank’s core banking system replacement project by focusing on basic project risk management
assessment process such as risk management planning, risk identification, analyze risk, evaluate
risk, treat risk and monitoring and controlling, that were identified as basic framework on
different literatures. The main research question focused on what was the practice of project risk
management of core banking system replacement project of Wegagen bank Sh. Co.?The study used
descriptive research design and analysis method, qualitative research approach and purposive
sampling technique. The semi-structural interview was conducted to collect primary data from
the respondents that consisted of 6 core team members including the project manager out of 28
direct participants of the project. The finding of the study indicates that based on the analysis, this
study identified the major gaps between the theory and in the actual risk management practice of the
project. Accordingly the study recommends that as effective communication is basic to minimize
risk during implementation of a project, it is highly recommended that all participants should be
communicated properly about risk and in all life cycle stages of the project. Moreover, to narrow
the gap occurred due to risk mismanagement during implementation of the project due attention
and training should be given for participants with related to various processes under project
risk management practice and risk identification. Based on the analysis finding the study also
recommends that organizations should prepare risk policy and procedure specifically for (IT)
projects that guide the project team to go through a disciplined risk management process. Also
organizations should allocate separate budget and responsible body that can facilitate IT risk
related matters during implementation of projects.
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Keywords
Risk, Project success, Project Risk, Management practice