The Effect of Planning for Risk Mitigation on Project Effectiveness in Affordable Housing Project in Rwanda

Abstract

The purpose of this research was to assess the effect of risk mitigation on project effectiveness in affordable housing project with following objectives; to assume /accept risks, to avoid risks and to control risks in the projects. The reviewed literature related to risk management and project effectiveness and found out that planning for risks mitigation facilitates project effectiveness. Descriptive research design was used the population of the study was 110 employees of affordable housing development project in Rwanda and the sample size was 52 respondents selected using purposive and simple random sampling techniques. Data collection tools were questionnaires and interviews while validity and reliability of research instruments was done through pretesting. Data was processed using SPSS program. The results showed that 98% contacted respondents agreed that planning for risk mitigation contributes to project effectiveness because it facilitates having analyzing risk, its possible causes and how best the project can control such risks, hence promoting effectiveness. The study concluded that the factors that planning for risk mitigation contribute to project effectiveness in affordable housing project are identifying causes of risks, documenting risks, breaking down risks and that being risk prepared. Consequently, it is recommended that risk assessment for affordable housing project and sound policy and procedures, in terms of resources and budgeting should be in place before the commencement of any housing project in Rwanda.