The Effect of Risk Management on Project Performance: Tthe Case of Dot Ethiopia in Community Development Work
No Thumbnail Available
Date
2022-06
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
Effective risk management strategies allow you to identify your project’s strengths, weaknesses, opportunities and threats. By planning for unexpected events, you can be ready to respond if they arise. To ensure your project’s success, define how you will handle potential risks so you can identify, mitigate or avoid problems when you need to do. This research focused on the Effect of Risk Management on project performance in the case of Dot Ethiopia, Addis Ababa. And explore the organization’s risk management practices influencing the project success on community development work. The study assessed the role of effective risk management, independent risk management unit and good risk management culture on the performance of projects in Dot Ethiopia. For this research explanatory and descriptive research design methods were used. The total sample sizes of the study were 30 of Dot’s employees and out 30, 25 of the questionaries returned correctly. The dependent variable of this research was project performance that affect the performance of Dot such as, project risk management planning, risk awareness, risk management culture and risk identification as independent variables. In this study descriptive, correlation and Binary logistic regression methods were used for data analyses. Based on the result of the cross-tabulation analysis, project performance was found to be significantly associated with project risk management planning and risk management culture. Whereas risk awareness and risk identification do not have direct association with project performance and we do not include it the binary logistic regression model. The study recommended, the organization, managerial team and other involved stakeholders should consider the identified major factors while implementing projects’ that will impact project success of organization the most. It is also recommended that creating a risk management culture which will help the projects that are implemented in terms of risk awareness, identifying risk and on time responses for the risks’ appeared will secure their sustenance for in the future. Risk management unit service such as, Training on risk awareness, identifying and controlling risk, managing the risk by using the risk management practice such as avoid the risk, accept the risk, transfer the risk and mitigate the risk have significant impact on the performance of project and project success.
Keywords: Risk Management, Project Management, Project Performance, Project Success, Community Development Work