| Abstract: | Risk management is recognized as an important exercise in order to achieve better performance of construction projects. Success in construction project is indicated by its performance in the achievement of project time, cost, quality, safety and environmental sustainability objectives. The housing projects run a high risk of being over budget and significantly late. While some degree of cost and time schedule risks is inevitable in construction projects, it is possible to improve risk management strategies to minimize their negative impact. This study tried to assess the practice of project risk management in Bole Arabsa housing project. The researcher has used descriptive research design. The data collection tools were questionnaire. The sample size of the study was 259 individuals who were selected through cluster sampling. The response rate was 100%. The sample size was selected through cluster sampling and a questionnaires with an item of 49 was distributed to the team members and individuals who are involved with the projects. The findings of the study revealed that there is no well-organized policy or guideline that recommend how to manage risks in the projects. The project doesn’t usually follows a defined or standard risk management process. Majority of respondents believed risk management is not treated as a continuous process in the project. The finding of the result showed irregularity as far as handling of uncertainties that occur within the project. Careful plan is not designed for the projects to overcome or handle uncertain events that may take place. Even though few respondents reported the project use of risk identification such as expert judgment, checklist, document review, information gathering, & assumption analysis, most of them disagree the existence of the practice of these method in the project. According to the respondents the majority source of risk in the project was human risk followed by technical and financial risks. Majority of respondent disagree the existence of well-developed strategy to respond to uncertainties if they occur. The project lags behind in the practice of risk monitoring and control within the project. Furthermore, risk management culture is very low in the enterprise. 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 project sites. Therefore, possible recommendations are preparation of proper policy or guideline, review priority of risk response strategy, establish a cross checking mechanism for monitoring and controlling process and Provision of training to employee. |
