Assessing The Practice Of Project Risk Management A Case Study Of Zemen Bank Headquarter Building Construction Project Project Work Submitted In Partial Fulfillment Of The Requirements For The Award Of Master Of Arts Degree I

Building construction projects are unique and very complex with sophisticated technologies and structuresrnthat are very fraught with uncertainty and risks. Therefore, it is necessary to have well-articulated andrnexperienced risk management practice in order to achieve project success not only by minimizing negativernconsequences but also by enhancing opportunities. This study aimed to assess the project risk managementrnpractice of Zemen Bank headquarter building construction project based on the five project riskrnmanagement processes namely, risk management planning, risk identification, analysis, response planning;rnand monitoring and controlling, that were identified from reviewing literatures. Therefore, the mainrnresearch question was ‘What was the current practice of project risk management of Zemen Bank’srnheadquarter building construction project?’. The study used descriptive research design and qualitativernresearch approach where semi-structure interview was used as primary source of data and documentationrnanalysis as secondary source of data. The study used semi-structured interview technique as data gatheringrninstrument and purposive sampling as sampling technique. Hence, the interview included one projectrnmanager and five project team members who were believed to know the area or subject matter very well.rnBased on the analysis, this study identified the major gaps in the actual risk management practice of thernproject. The research found that the project did not establish the risk management methodology, risk rolesrnand responsibilities, risk categories, probability and impact scales, risk appetite and tolerances limit, andrnfrequencies of risk management activities and reporting. The project did not identify a broad range of risks,rnin terms threat as well as opportunities, throughout the project lifecycle using effective tools and techniquesrnwith involvement of appropriate stakeholders; and it does not have a risk register. Besides, the result of thernrisk assessment was not periodically reported to the project stakeholders. The project mainly used riskrnmitigation and risk transfer strategies to response for the identified negative risks (threats). However,rnresponse for positive risks were not used in the project; and contingency plan and fallback plan are notrndeveloped and implemented. The project did not use risk reassessment, risk audit, variance and trendrnanalysis, technical performance measurement and reserve analysis to monitor and control risks. Thernconclusion made from the study indicated, the overall effectiveness of the project’s risk managementrnpractice was poor that lacked standard and consistent risk management process. The project did notrnconsider risk management as an ongoing that requires dedicated staff, resource and appropriate training.rnFinally, recommendations forwarded such as prepare risk management plan, identify broad range of risksrnfrom possible sources, prepare risk register, assess the effectiveness of its project risk managementrnpractice, assign risk management ownership, encourage risk communication and embed risk managementrnpractice in daily project activities using appropriate tools and techniques.

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