ASSESSMENT OF PROJECT RISK MANAGEMENT IN SELECTED MINING COMPANIES IN ETHIOPIA

Abstract

Purpose: This study uses qualitative research to assess the project risk management practices of selected mining companies in Ethiopia. Methodology: The study was qualitative, and data was obtained using purposive sampling methods; the study's sample size was based on 41 respondents working actively on mining projects in Ethiopia. The questionnaires covered the main aspects of risk management, including overall project risk management, risk planning, risk identification, risk analysis, and risk monitoring and controlling practices. Findings: The study's findings indicated the absence of systematic risk management policy or guidelines and no organized standard risk management processes. Moreover, project managers primarily manage risk with their team's support. It was found that with risk identification, risk analysis, monitoring, and controlling processes, mitigation of project risks could have been conducted more proactively. Instead, risks are managed upon occurrence by relying primarily on the subjective judgment of the mining specialists, often project managers. Originality/Value: This research assesses the risk management practices of mining companies in Ethiopia for the first time. Recommendations have also been made for companies to develop their risk management knowledge through training and exposure to international practices. This approach will slowly build a systematic approach to risk management practices in the Ethiopian setting. The findings of this article also indicated the need for more research as few papers have been published on mining risks globally, and none have been published in Ethiopia’s context.