| Abstract: | This research aims to assess the risk management practices and challenges within Sunshine
Building Construction, a leading construction company in Addis Ababa, Ethiopia. By exploring
the company's risk management approaches, identifying challenges, and evaluating awareness
and implementation levels, this study seeks to provide valuable insights for improving risk
management processes in the construction industry.
A mixed method approach is adopted, incorporating both qualitative and quantitative data
collection methods, including questionnaire surveys and interviews with project managers, team
members, stakeholders, and clients. The population for the study comprises employees working
at the head office and various site project managers. Non-probability sampling techniques are
utilized to select the sample population based on convenience and manageability with a sample
size of 60 respondents. Data is collected through primary sources such as interviews and
surveys, as well as secondary sources including document analysis and literature review.
Different data analysis techniques are employed, utilizing descriptive statistics and qualitative
analysis to interpret the findings. This study investigates the risk management practices and
challenges faced by Sunshine Building Construction in Addis Ababa. Key findings reveal a
significant positive relationship between risk management practices and project success.
Descriptive statistics indicate the presence of an efficient risk management plan, including risk
breakdown structures, resource estimation, and scheduling. Risk identification involves
comprehensive tools and processes, while risk analysis employs qualitative methods and risk
matrices. Risk response strategies include avoidance, contingency planning, transfer, and
acceptance, with personnel assigned to specific responses. The study also identifies challenges
related to construction, financial, and political/legal issues. The findings underscore the
importance of systematic risk management to enhance project outcomes in the construction
industry. Key recommendations include analyzing the likelihood and severity of each risk,
developing response plans, and prioritizing risks based on a risk register. Engaging the project
team and stakeholders in risk analysis, allocating proper budgets, and actively monitoring risks
are essential strategies. Regular updates and check-ins with risk managers are crucial to avoid
unexpected issues. The study highlights the need for a well-organized risk management policy,
training for the project team, and maintaining a documented record of past project risks for
future reference. |
