A Study on Development of a Conceptual Risk Management Framework: A Case Study on Addis Ababa City Roads Authority
No Thumbnail Available
Date
2017-12
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
AAU
Abstract
This research deals with developing a conceptual risk management framework for the Addis Ababa City
Roads Authority (AACRA) after studying the current risk management practice in Addis Ababa and
Federal public road construction sector. The conceptual risk management framework is developed for
holistic approach and feasibility phase. In addition, the study has an objective of identifying the
likelihood of key risk factors in AACRA, investigating their impact on project goals (i.e. Cost, Quality,
and Time), analyzing and the degree of significance of the identified risk factors, studying the allocation
of each identified risk factors based on stakeholders' perception, giving insight of risk management
practice and key risk factors in Ethiopian Roads Authority’s (ERA’s) projects, providing practical
suggestions and recommendations pointing toward upgrading the risk management practice in AACRA
and ERA.
Various literatures were reviewed mainly to identify various risk factors, define risk management
process, and review different risk management frameworks. Desk studies and case studies were
conducted on AACRA and ERA projects. In addition, questionnaire survey was used as a data collection
mechanism in order to acquire the required data.
The researcher concludes that the staffs of the major stakeholders in the Ethiopian construction industry
are aware of risk management principles. However, the risk management practice in the industry is in
its maturity stage. Currently, the Ethiopian public road construction sector is facing various hindrances
and been adversely affected by various risk factors. The major challenges in the sector include: right-ofway
obstacles,
incomplete
design
and
design
problems,
inadequate
site
or
geotechnical
investigations,
scope
and
design
changes,
and
unexpected
weather
conditions.
The
researcher
also
proves
that
there
is
poor
practice
of
feasibility
study
in
AACRA’s
projects.
The
researcher
suggests
to
the
Addis
Ababa
City
Roads
Authority
to
develop
a
risk
management
guidelines
and
policies
based
on
the
provided
conceptual
risk
management
framework.
In
addition,
public
authorities
should
practice
a
detailed
risk
allocation
and
mitigation
plans.
AACRA could conduct feasibility studies before executions for avoiding economic
loss from projects execution. In addition, it will be better if AACRA could implement various project
delivery and/or contract types according to the projects property.
Description
Keywords
Addis Ababa City Roads Authority (AACRA), Ethiopian Roads Authority (ERA), Framework, Risk, Risk Management