Risk Management Practices and Implementation of Infrastructure Construction Projects in Galmudug State of Somalia

Abstract

This study's primary goal was to determine how risk management practices and the implementation of infrastructure construction projects in Galmudug State, Somalia, relate to one another. Specifically, the research sought to determine the influence of risk identification practice, risk analysis practice, risk response risk practice and risk control practice on implementation of infrastructure construction projects in Galmudug State in Somalia. The research was anchored on the enterprise risk management theory, the contingency theory and the prospect theory. Descriptive survey research design was adopted targeting 55 project contractors, sub-contractors, engineers and risk managers from four infrastructure construction projects in Galmudug State and census was used. The primary data was gathered using a standardized questionnaire, and its validity and reliability were then evaluated. The gathered information was analyzed using SPSS version 24. The study results were analyzed using means and percentages as well as regression analysis through SPSS version 24 and presented through tables. The findings were that risk identification practice (β=0.978) had the greatest effect on implementation of infrastructure construction projects followed by risk analysis practice (β=0.404), risk control practice (β=0.319) and lastly risk response planning practice (β=0.209). The study concludes that project risk management practices have significant influence of implementation of infrastructure construction projects. It was recommended that risk managers working in infrastructure construction projects in Galmudug State ought to leverage the existing risk identification, analysis, control and response planning practices in place so as to counter the negative impacts that are occasioned by occurrence of risky events. The contractors and risk managers working with infrastructure and construction projects in Galmudug State ought to identify clear risk acceptance levels in the projects. Regular tracking of risk status, risk audits and periodic risk reporting ought to be adopted by the risk managers of infrastructure and construction projects in Galmudug State.