| 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. |
