An Assessment On The Risk Management Practice Of Construction Projects; Case Study Of Addis Ababa Saving Houses Development Enterprise
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Date
2017-06-11
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Addis Ababa University
Abstract
Managing risk is an essential process for project success. Risks are unseen events that could
have a positive or a negative impact on the project success. Managing risks and preparing risk
management plan will help the project to identify and estimate the level of the impact of the risk
and help for prior preparation to risk impacts. The purpose of this study is to assess the risk
management practice of the construction projects in the specific case of Addis Ababa Saving
Houses Development enterprise. The enterprise is managed by the Ethiopian government and the
study specifically focused on 40/60 housing project. The enterprises risk management practice
was measured by three variables; risk management method, lifecycle risk management and risk
culture. questionnaire was developed based on the three variables mentioned. The data obtained
from the questionnaire was analyzed quantitatively using SPSS software. The data collected from
interview and open ended questions were analyzed qualitatively. The quantitative data were
presented using tables and the qualitative data was used to support and elaborate the
quantitative data. From the quantitative and qualitative data it was found that the enterprise
doesn't use scientific and proper risk management. Risks arise at each stage of project and these
risks are managed throughout the project lifecycle. The risk culture of the enterprise is recently
developing. Trainings and experience sharing were made to increase employee awareness of risk
management. Top level managers still have not realized the importance of established risk
management system. The absence of risk management system is creating negative financial,
schedule and quality impacts. To overcome the condition mentioned above, the researcher
suggested, ownership and accountability of risks to be created to minimize risk occurrence.
Separate risk management department should be created and once created proper division and
assignment of responsibility should be made regarding risk management. enterprise need to be
more flexible and it should have a fixed communication centre for risks. Furthermore, frequent
trainings need to be made to deepen the concept of risk management and its importance into
employees mind to enable them to manage risks on their everyday work. At enterprise level risk
aspects should be incorporated in the principles and strategies
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Keywords
Risk, Risk management, Risk management method or system