Risk Management Practices in Ethiopian Somali Regional State Construction Projects

Risk management practices are critical for construction companies to prevent any problems caused by uncertainties in the projects. This study examines how risk management is practiced in construction projects of the Somali Regional State in Ethiopia. It also identifies the most influential risk factors in the region which need to be given a higher consideration when practicing risk management. Within this context, a questionnaire survey was conducted among construction professionals in the Somali region. Based on the findings, there is a deficient practice of risk management in Somali Regional State construction projects due to a lack of knowledge or budget. Risk factors like design errors, top management changes, insufficient experienced staff, and delays in payment are found to have the highest probability of occurrence in Somali Regional State construction projects. Findings from this study can help construction managers to better understand the risk factors influencing construction projects in the Somali region in the context of improving project performance.

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