Assessment of Project Risk Management Practices: The Case of Bole Lemi Industrial Park
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Date
2020-07
Authors
Tadesse, Getu
Journal Title
Journal ISSN
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Publisher
Addis Ababa University
Abstract
It has been a while since the development of industrial park is initiated in Ethiopia. The
IPs in most cases have targeted to attract foreign investors. It is believed the high level of
sophisticated infrastructure requirement of IPs need higher attention. Since international
companies are expected to operate in the parks, it makes them central emphasis of
effective project management. One of the key features of effective project management is
a systematic and formal project risk management. Project risk is imminent and cannot be
avoided. When it comes to grand project like IPs, the risk factor of project management
is usually given a serious focus. This is because, even after an extended period after
completion, the project could be found below standard. The project under study considers
one case of the public industrial parks, BLIP. The project research area is chosen in
consideration of the high-risk prevalence in IP projects. Environmental and social
aspects make the project riskier like many other development projects. By employing
nonrandom sampling technique and mixed approach research method, factors related to
risk management practices are studied. It is founded that there are sufficient risk
planning formalities, project risk management manual and quality project risk
management tools and techniques while for capacity of the project risk management
department/team, samples tend to be neutral. In addition, Value of project risk
management is perceived to be high during project execution followed by project
planning. It is also found that despite project risk management is perceived as being
more useful than the other knowledge area in many occasions of the project, this does not
make it the only important area. In fact, it is indicated the risk management could not
have any value for the project unless it is integrated with the other areas. Some tools and
techniques are identified. But, an un-organized and ad-hoc approach of risk management
made the performance weak. Sources of project risk are identified to be both internal and
external.
Description
Keywords
Project Management, Project Risk Management, Industrial Park