Project Risk Management Strategies and Performance of Socio-Economic Projects in Rwanda: A Case of Urban Economic Development Initiative Project

Abstract

The purpose of this study was to assess the effect of Project risk Management Strategies on the Performance of the Urban Economic Development Initiative Project. The study was guided by the following specific objectives: To assess the effect of project risk planning strategy on the performance of the Urban Economic Development Initiative Project, to evaluate the effect of risk assessment strategy on the performance of the Urban Economic Development Initiative Project, to assess the effect of risk responses on the performance of the Urban Economic Development Initiative Project. A descriptive design was used for this research project. The study’s target population was equal to sample size of 45 due to population less than 100. Both primary and secondary research approaches were utilized in order to compile the data. For the primary data collection, the researcher adopted questionnaires, and for the secondary data collection, the researcher applied a documentary review. The gathered data was evaluated using both descriptive statistics, such as the use of frequency and percentage as well as the mean and standard deviation, and inferential statistics, such as the use of multiple linear regression analysis. Tables were employed to exhibit the results of the investigation, and a pilot study was carried out to evaluate the validity and reliability of the instrument that was utilized in the data collection process. The results showed that Pearson Coefficient Correlation indicated that .694 relationship between project risk assessment strategy on the performance of Urban Economic Development Initiative Project. The third specific objective revealed the effect of project risk responses on the performance of the Urban Economic Development Initiative Project, the results showed that 8.9% strongly agreed and 88.9% agreed that reducing project risks contributes to the performance of the Urban Economic Development Initiative Project. In addition, project risk response improves the performance of the Urban Economic Development Initiative Project at r=.861 which is a strong positive correlation. The study concluded that risk planning, risk assessment, and risk response contribute highly to the performance of the project. In recommendation, project key stakeholders should apply risk avoidance strategy to improve the performance of socioeconomic project Keywords: Project Risk Management, Performance Measurement, Socio-Economic Projects, Urban Economic Development, Risk Management Strategies, Rwanda's Development Initiatives