PRACTICE OF PROJECT RISK MANAGEMENT IN NIB INTERNATIONAL BANK: THE CASE OF HEAD QUARTER AND HAWASSA BUILDING PROJECTS.

Abstract

Today many organizations are working in projects and in order for a project to be successful, project risk management is an essential part of project management. This study tries to identify the practice of project risk management in NIB Head Quarter and Hawassa Building projects. The researcher has used descriptive research method. The data collection tools were questionnaires and administrative interview. The sample size of the study was 42 individuals who were selected through purposive sampling. The response rate was 85.7%. the finding of the study showed there is a policy or guideline that is designed as to how to manage risks in the projects. Standard risk management process also does exist within the project. However, relevant stakeholders are not involved the planning process of the projects, and thorough planning is not performed further, the finding reveled that risk identification and analysis is performed for the projects and it is done based on expert Judgment. Team members take into consideration factors such as resource, schedule and budget while responding to risks that occur and that might occur. There is a well-defined strategy that guides on how to respond to risks within the project. The practice of monitoring and control risks is applied within the projects by the team members without giving due attention to the goals and objectives that the projects aim to reach. Generally, the outcome of the research confirmed that risk management practice is implemented to some extent but there is a gap between the theory of project risk management which should be applied and the actual practice that is performed by the two building projects. Therefore, possible recommendations are outlined at the end of this project work on what actions should be taken to improve this practice.