Assessing Project Risk Management Practices: Case Study on Selected Leather Industry in Addis Ababa

Abstract

Risk management (RM) is a concept which is used in all industries. The tanning industry is means of job creation and export earnings for developing countries. In order to examine how risk management process and environmental challenge is perceived in the manufacturing sector which is different tannery factory or leather industry. All analyses were based on a theoretical background regarding risk management process and environmental challenge in the manufacturing sector. The purpose of this study was to investigate the current risk management practices and the risk management system that is adopted by the chosen company. The study used both primary directly collected from workers using qusetionnary and secondary data(different text book used). The primary data were collected through questionnaires and secondary data were compiled from documents, reports, company website, and so on. The result revealed that the company has a risk management structure in place and it has developed written policies and procedures for risk management. Quality of project risk management tools and techniques with a mean score of 3.62, rated level of documented risk planning formality to be good in general with a score of 3.21, thought there is quality of risk management manual with mean score of 3.44 and slightly agreed from being neutral on capacity of the project risk management team with mean score of 3.59. The result shows from SPSS soft ware analysis minimum mean value above 3.12 for project risk management. Inter items correlation mean score value is 0.55 and range value is also 0.69 for project risk management in leather fatory.