Impact of Risk Management Components on the Performance of Projects: A Study on Projects Financed by UNHCR in Ethiopia

Abstract

Through the past decades researches and academics have focused on assessing the impact of risk management components but for mega and complex public projects. In this regard, there is a limitation to witness the impact of risk management components on the performance of projects managed by not-for-profit, non-governmental organizations. It is true for the case of projects run by NGOs in Ethiopia as a common fact evidenced through an extensive the review of an empirical sources. Therefore, it aimed to assess the impact of risk management components on the performance of projects financed by UNHCR in Ethiopia. The research. adopted both an explorative research design. It employed a mixed approach to both quantitative 13 and qualitative data collection and analysis methods. The target population of the research were employees of the implementing partners identified as focal persons for the project partnership management with UNHCR in Ethiopia; numbered 112. A simple random sampling design was used to determine the sample size of the research by which 88 respondents were randomly selected using lottery method. The research found out that there is a variation between respondents’ perception and the conventional definition on the concept of risk. Besides, the use of risk register for risk planning purpose was found low. Most of the respondents practiced budget variance analysis as a risk mitigation technique. However, there is a significantly low use of other risk management tools and techniques by the respondents. Moreover, the negative beta coefficients observed for the risk management components which indicated the need to enhance the risk management practice of the respondents to enhance the performance of projects. Therefore, there is a need to develop a mechanism to support for risk closure when projects are completed.