Abstract:
The main purpose of this research was to examine the factors affecting the effectiveness of
project risk management practice in the case of the Debre Berhan University construction
project. It investigated the influence of six dimensions of risk effectiveness including risk
planning, risk identification, risk analysis, risk response strategy, risk monitoring and
controlling, and leadership commitment. The study population includes 586 employees,
from whom 238 respondents’ were selected and given questionnaires out of which 226
correctly filled and returned questionnaires were used for analysis purposes. The
collected data were analyzed using SPSS version 24 and an overall analysis was
performed using descriptive statistical analysis, Pearson correlation, and regression
analysis. The analysis of the descriptive statistics suggests that the organization exhibits a
generally medium to high level of effectiveness in its risk management practices, with risk
analysis being a particular strength and leadership commitment being a relatively weaker
aspect, in general, these are implemented with a medium level of effectiveness. The result
of correlation analysis showed that all the independent variables have positive
relationships with the dependent variable. The medium levels of each independent
variable are associated with higher levels of effective risk management Practices. Finally,
the regression analysis indicated that all the variables related to risk management
practices (risk planning, risk identification, risk analysis, risk response strategy, risk
monitoring, and controlling, and leadership commitment) have a significant positive
relationship with the effectiveness of project risk management practices at 5% margin of
error level. The study concludes that addressing these dimensions of risk management
effectiveness is crucial for enhancing the overall effectiveness of project risk management
practice. Recommendations include strengthening leadership commitment, improving risk
identification processes, developing effective risk response strategies, enhancing risk
analysis capabilities, implementing robust risk monitoring and controlling mechanisms,
and comprehensive risk planning.
