Risk Management and Performance of Undp Projects in Somalia: A Case Study of Mogadishu to Cadale Road Construction Project

ABSTRACT This study sought risk management and performance of UNDP projects in Somalia: a case study of Mogadishu to cadale road construction project. The objectives were; To establish relationship between risk identification and project performance of Mogadishu to Cadale Road Construction project, To assess the relationship between risk monitoring and control and project performance of Mogadishu to Cadale Road Construction project, and. To assess the relationship between risk response and project performance of Mogadishu to Cadale Road Construction project, the study was based on Prospect theory of Tversky&Kahneman2013. The study applied a correlation research design to examine the relationship between risk management and project performance of Mogadishu to Cadale Road Construction Project. The study applied the quantitative data involved information from the questionnaires only. The qualitative and quantitative approaches were employed based on the Mogadishu to Cadale Road Construction Project. The quantitative technique was used to collect and analyze data on the risk management. The qualitative approach was used performance of Mogadishu to Cadale Road Construction Project. This design was used because it brings out clearly the relationship between risk management and project performance. The study findings revealed that the average Mean was 2.23 which was equivalent to low. This implies that there is a close relationship between risk identification and project performance of Mogadishu to Cadale Road Construction project, Mogadishu-Somalia. It was also found out that the average mean of the relationship between risk monitoring and control and project performance of Mogadishu to Cadale Road Construction project, Mogadishu-Somalia was 2.41. This implies that there was a close relationship between risk monitoring and control and project performance of Mogadishu to Cadale Road Construction project, Mogadishu-Somalia. The study findings revealed that the average mean of Relationship between risk response and project performance of Mogadishu to Cadale Road Construction project, Mogadishu-Somalia was 1.90 which was. This implies that there is a close relationship between risk response and project performance of Mogadishu to Cadale Road Construction project, Mogadishu-Somalia. The study concludes that risk management in the construction project management context is a comprehensive and systematic way of identifying, analyzing and responding to risks to achieve the project objectives. The study concludes that during the project, risk monitoring and control is the processes of keeping track of the identified risks, monitoring the residual risks and identifying new risks. This process was also ensure the execution of the risk plan and continually evaluate the plan’s effectiveness in reducing risk. Resource allocations can also be monitored as these were have been pre-planned and, where appropriate, allocated to the agreed actions. The study concludes that risk response is the action to be taken towards the identified risks and threats. The response strategy and approach chosen depend on the kind of risks concerned. Other requirements are that the risk needs to have a supervisor to monitor the development of the response, which was agreed by the actors involved in this risk management process.

TABLE OF CONTENTS

DECLARATION........................................................................................................................... ii

APPROVAL .................................................................................................................................iii

DEDICATION.............................................................................................................................. iv

ACKNOWLEDGEMENTS ......................................................................................................... v

LIST OF TABLES....................................................................................................................... vi

LIST OF FIGURE ...................................................................................................................... vii

TABLE OF CONTENTS .......................................................................................................... viii

ABSTRACT.................................................................................................................................. xi

CHAPTER ONE ........................................................................................................................... 1

GENERAL INTRODUCTION.................................................................................................... 1

1.0 Introduction............................................................................................................................... 1

1.1 Background of the Study .......................................................................................................... 1

1.1.1 Historical perspective............................................................................................................. 1

1.1.2 Theoretical perspective .......................................................................................................... 2

1.1.3 Conceptual perspective .......................................................................................................... 3

1.1.4 Contextual perspective........................................................................................................... 4

1.2 Statement of the problem.......................................................................................................... 5

1.3 Purpose of the study.................................................................................................................. 6

1.4 Objectives of the study.............................................................................................................. 6

1.5 Research questions.................................................................................................................... 6

1.6 Scope of the Study .................................................................................................................... 6

1.6.1 Geographical Scope ............................................................................................................... 6

1.6.2 Content Scope ........................................................................................................................ 7

1.6.3 Time Scope ............................................................................................................................ 7

1.6.4 Theoretical scope ................................................................................................................... 7

1.7 Significance of the Study ............................................................................................................ 8

1.8 Definitions of Key terms............................................................................................................. 8

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CHAPTER TWO .......................................................................................................................... 9

LITERATURE REVIEW ............................................................................................................ 9

2.0 Introduction............................................................................................................................... 9

2.1 Theoretical Review ................................................................................................................... 9

2.2 Conceptual Frame work.......................................................................................................... 12

2.3 Related Literature.................................................................................................................... 13

2.3.1 Risk Identification and project performance........................................................................ 13

2.3.2 Risk monitoring and control and project performance ........................................................ 15

2.3.3 Risk response and project performance ............................................................................... 16

2.4 Related Studies........................................................................................................................ 17

2.5 Research Gap .......................................................................................................................... 19

CHAPTER THREE.................................................................................................................... 20

RESEARCH METHODOLOGY .............................................................................................. 20

3.1 Introduction............................................................................................................................. 20

3.2 Research Design...................................................................................................................... 20

3.3 Study Population..................................................................................................................... 20

3.4 Sample Size............................................................................................................................. 20

3.5 Sample Procedure ................................................................................................................... 21

3.5.1 Simple Random sampling.................................................................................................... 21

3.5.2 Purposive sampling.............................................................................................................. 22

3.6 Sources of Data ....................................................................................................................... 22

3.7 Research Instruments.............................................................................................................. 22

3.7.1 Interviews............................................................................................................................. 22

3.7.2 Questionnaires...................................................................................................................... 22

3.8 Validity and reliability of the instrument................................................................................ 23

3.8.1 Validity ................................................................................................................................ 23

3.8.2 Reliability............................................................................................................................. 23

3.9 Data gathering procedure........................................................................................................ 23

3.10 Data analysis......................................................................................................................... 24

3.11 Ethical Consideration............................................................................................................ 25

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CHAPTER FOUR....................................................................................................................... 26

PRESENTATION DATA ANALYSIS ..................................................................................... 26

4.0 Introduction............................................................................................................................. 26

4.1 Demographic characteristics of the Respondents................................................................... 26

4.2 Relationship between risk identification and project performance of Mogadishu to Cadale

Road Construction project, ........................................................................................................... 27

4.3 Relationship between risk monitoring and control and project performance of Mogadishu to

Cadale Road Construction project, ............................................................................................... 30

4.4 Relationship between risk response and project performance of Mogadishu to Cadale Road

Construction project, Mogadishu-Somalia ................................................................................... 32

CHAPTER FIVE ........................................................................................................................ 37

DISCUSSION OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS .............. 37

5.0 Introduction............................................................................................................................. 37

5.1 Discussion of findings............................................................................................................. 37

5.1.1 Relationship between risk identification and project performance of Mogadishu to Cadale

Road Construction project, Mogadishu-Somalia.......................................................................... 37

5.1.2 Relationship between risk monitoring and control and project performance of Mogadishu to

Cadale Road Construction project, Mogadishu-Somalia.............................................................. 37

5.1.3 Relationship between risk response and project performance of Mogadishu to Cadale Road

Construction project, Mogadishu-Somalia ................................................................................... 38

5.2 Conclusions............................................................................................................................. 38

5.2.1 Risk Identification and project performance........................................................................ 38

5.2.2 Risk monitoring and control and project performance ........................................................ 39

5.2.3 Risk response and project performance ............................................................................... 39

5.3 Recommendations................................................................................................................... 39

5.4 Areas of further research......................................................................................................... 40

REFERENCES ............................................................................................................................. 41

APPENDICES .............................................................................................................................. 46

APPENDIX I: QUESTIONNAIRE .............................................................................................. 46

APPENDIX II: INTERVIEW GUIDE ......................................................................................... 49