Assessment of Project Risk Management in Selected Mining Companies in Ethiopia
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Date
2023-06
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Addis Ababa University
Abstract
The purpose of this research project is to assess project risk management practices of selected mining companies in Ethiopia namely– BEAEKA General Business, Tulu Kapi Mining Share Company, Oromia Mining Share Company, and El Net Technology. The study was descriptive by its type and data was obtained using purposive sampling methods; the sample size of the study was determined to be 41 respondents working actively on the mining projects from contractors, client and regulators side. Closed-ended questions were administered to respondents via questionnaire while interviews with two project managers and one general manager was conducted. The questionnaires covered main aspects of risk management including the overall project risk management, risk planning, risk identification, risk analysis and risk monitoring and controlling practices of the surveyed projects. The finding of the study indicated absence of systematic risk management policy or guidelines, and no organized standard risk management processes. Moreover, risk is primarily managed by the project managers with support from their team. In relation to risk identification, risk analysis and risk monitoring and controlling processes, they aren’t undertaken in a way to mitigate project risks proactively. However, risks are handled upon their occurrence by relying on expert subjective judgments of project individuals especially of the project managers.
One international company was part of the survey with a very good risk management knowledge and practice but their experience in the survey has been overshadowed by the findings from the other local mining companies.
Recommendations have also been forwarded to companies to build their risk management knowledge through trainings and exposures to international practices. This will slowly build systematic approach in risk management practices in local settings. The topic also needs more researches in the future as there are few papers published in mining risks globally and none in Ethiopia’s context
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PProject risk management practice, Mining companies