RISK MANAGEMENT PRACTICES AND PERFORMANCE OF INFRASTRUCTURAL PROJECTS IN NAKURU COUNTY, KENYA
Abstract
The objective of project risk management is to increase the likelihood and impact of positive events and decrease the likelihood and impact of negative events on the project. Project risk has its origins in the uncertainty present in all risks. The objective of the study was to examine effect of risk management practice on performance of infrastructural projects in Nakuru County, Kenya. The specific objectives were; to determine the effect of risk mitigation and risk control on performance of infrastructural projects in Nakuru County, Kenya. The study will be anchored on uncertainty theory, prospect theory, and enterprise risk management theory, and portfolio theory. The study adopted a cross-sectional survey design. The unit of observation was 201 project managers of the infrastructural projects. Yamane sampling was used to sample 134 project managers. Data was collected using questionnaires. A pilot was conducted with 13 project managers representing 10% of the sample size. The study used content and construct validity. Reliability was tested using Cronbach’s Alpha Coefficient. Descriptive and inferential statistics were analyzed using SPSS version 28. Findings were tabulated. Findings show a strong significant relationship between risk mitigation and project performance (r = 0.457, p-value=0.005), and a strong relationship between risk control and project performance was (r = 0.525, p-value=0.000). The study recommends that; projects managers should mitigate risks through diversification, and project managers should apply a system of policies and strategies in order to control the risks of running out of project funds provided their resources are applied effectively.
Key Words: risk mitigation, project performance, risk control, risk management practice
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