It has been a while since the development of industrial park is initiated in Ethiopia. ThernIPs in most cases have targeted to attract foreign investors. It is believed the high level ofrnsophisticated infrastructure requirement of IPs need higher attention. Since internationalrncompanies are expected to operate in the parks, it makes them central emphasis ofrneffective project management. One of the key features of effective project management isrna systematic and formal project risk management. Project risk is imminent and cannot bernavoided. When it comes to grand project like IPs, the risk factor of project managementrnis usually given a serious focus. This is because, even after an extended period afterrncompletion, the project could be found below standard. The project under study considersrnone case of the public industrial parks, BLIP. The project research area is chosen inrnconsideration of the high-risk prevalence in IP projects. Environmental and socialrnaspects make the project riskier like many other development projects. By employingrnnonrandom sampling technique and mixed approach research method, factors related tornrisk management practices are studied. It is founded that there are sufficient riskrnplanning formalities, project risk management manual and quality project riskrnmanagement tools and techniques while for capacity of the project risk managementrndepartment/team, samples tend to be neutral. In addition, Value of project riskrnmanagement is perceived to be high during project execution followed by projectrnplanning. It is also found that despite project risk management is perceived as beingrnmore useful than the other knowledge area in many occasions of the project, this does notrnmake it the only important area. In fact, it is indicated the risk management could notrnhave any value for the project unless it is integrated with the other areas. Some tools andrntechniques are identified. But, an un-organized and ad-hoc approach of risk managementrnmade the performance weak. Sources of project risk are identified to be both internal andrnexternal.