Project Risk Management Practice: The Case of Walia Luxury Hotel Apartments
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Date
2024-10
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Addis Ababa University
Abstract
The primary focus of this study is to assess the risk management practices of the Walia Luxury Hotel Apartments building project. The study aims to understand the project risk management process, identify risk factors and develop response strategies. A closed-ended questionnaire was distributed to 31 participants, including personnel from the client, contractor, and consultant, to identify which steps of the project risk management procedures were given attention and to compare and rank 34 risk factors in terms of probability of occurrence, impact on time and budget. Using descriptive approaches, the quantitative data were statistically analyzed in SPSS version 27 software. The research revealed that project risk analysis and project risk monitoring and control received little to no attention throughout the project lifecycle. It was observed that, among project risk management procedures, risk response was comparatively well-executed. The results also reviled that the majority of the risks are linked to finances with regard to the probability of occurrence. The top-rated risk factors, in terms of their biggest impact on project schedule and budget, were financial, design, and construction risks. Finally, risk response plans were developed in relation to the recognized risk factors. The research concludes that it is critical to address the flaws found in the project's risk management procedures by implementing necessary changes. Those changes could aid the project to effectively handle and mitigate the identified risk factors, particularly those of financial and technical aspects. The research also recommended that every project stage implement project management processes. Although it's very hard to control financial risks such as price fluctuation, inflation, and exchange rates, there should be a flexible contingency plan in place to account for these risks without negatively affecting the project's budget or schedule.
Key words: Risk, Risk factors, Project risk management