AN ASSESSMENT OF RISKMANAGEMENT PRACTICE AT DEFENCE CONSTRUCTON ENTEPRISE(DCE)

Abstract

The purpose of this research to assess and identify Defense construction enterprise (DCE) employees’ perception on the significance of construction risk and to explore risk management practice i.e. identifying, analyzing and risk controlling practices. Thus due to its work nature complexity, construction industry requires continues evaluation and formulation of risk management; however, Defense construction enterprise is yet introduce of a risk rating tool for its construction. Descriptive research design was under taken with the help of closed-ended questionnaires, interviews and document analysis to conduct the research. The research had done based on the responses of enterprise's management staff and professional engineers at head office and 13 building construction project working in Addis Ababa. The statistical findings revealed that among the identified 38 risk factors, 34 risks factors as highly incorporated risk, 27 as medium risk and the rest 4 considered as low significance risk factors. Accordingly the most significant risk factors identified by respondents’ were unmanaged cash flow, defective design, design change, increase material cost, and inflation .In allocation to whom responsible those risk faces show 14 type indicated enterprise as contractor handle,9 risk factors with owner as client,3 risks shared the responsibility both owner and client and 12 type of risk factors could not decided to allocate. As this research provided valuable knowledge in risk management practice regarding the management and professional engineers’ perception towards Enterprise risk management. Defense construction enterprise Management must focus on the significance of identified risk factors to achieve higher levels of financial performance and improve the perception on risk management practice that have high effect on Enterprise and allocate sufficient resources to practice risk management successfully to have industry competitive advantage. Finally, this study offers the base to conduct similar research in related area.