AN ASSESSMENT OF RISK MANAGEMENT PRACTICES: IN THE CASE OF ETHIOTELECOM TOWER CONSTRUCTION PROJECT

Abstract

This study focused on an assessment of risk management practice in the case of Ethiotelecom tower construction project. The descriptive survey design was used for data collection. Data were generated through personal interview and survey questionnaires. The interview and questionnaires were prepared and conducted to Ethiotelecom tower construction project department, ZTE and HUAWEI staffs were involved collecting the most common and frequently used of the identified risk factors, to assess risk analysis techniques and risk management techniques on the project. The finding of this study specified that to identify the major risk factors that affect the tower construction project in Ethiotelecom tower construction project. So categories of different risk groups and risk factors related to tower construction project was done. 37 types of risk factors, 13 types of risk analysis techniques, 10 types of preventive techniques and 9 types of mitigated techniques were selected under this study. Socio-political risk category was the first higher risk categories from the others of tower construction project and from those categories bribery/corruption risk factor was also affect the project highly from all 37 risk factors. Financial risk category was the second type of higher risk category and from this category increase material cost and availability and fluctuation in foreign exchange were affect the project highly next to bribery/corruption. Risk management department staff highly used expert system, using computer simulation and Delphi techniques type of risk analysis techniques. Purchase technology/software to capture and display critical information, seek out the experts and use them, Hire or assign internal staff and Use hedging budget and labor were practices highly on mitigation techniques of risk management techniques. Recognizing the Identify hazards, Standards on Protective Equipment (Equipment care), Good training program also practices on preventive techniques. The study concludes most of the Ethiotelecom tower construction project staff did not have sufficient knowledge about risk management and also, they were new for risk factors and risk management techniques. Based on the findings, a recommendation for Ethiotelecom tower construction project, Ethiotelecom should give careful attention for risk management practices and techniques. Ethiotelecom top management must deal with the contractors frequently about risk before that happened and use standard risk management simulation software. Ethiotelecom staffs those involves on the project must be participate and take any type of risk management training program.