Risk Management Processes and Success of Projects: A Case Study of Kenya Power Company

Abstract

The poor performance of several Kenya Power (KP) projects is due to illegal connection, inadequate power distribution, untimely completion of projects, and inadequate utilization of risk management strategies. Such failures point to the reason why several KP projects have failed to meet the given time frame. Therefore, a research was done to determine the link between project risk management processes and success of projects at KP. The study used four objectives; to establish the influence of risk identification process, risk assessment process, risk response process and risk evaluation process on the success of projects at KP. The study utilized both descriptive and explanatory approaches. The target population in this study was 231 staff located at the KP head quarter. The sample size used was 146 based on Yamane formula. Questionnaires were used to collect data. The study used Statistical Packages for Social Sciences (SPSS) version 20.0 for data analysis. Data was analyzed by use of descriptive statistics and multiple regressions analysis. Regarding regression analysis, the study found that risk identification, risk assessment, risk response and risk evaluation processes had positive relationship with the success of KP projects. The study concludes that risk identification, risk assessment, risk response and risk evaluation processes were practiced at KP, however, failures in projects was still evident. It was recommended that KP project team should be adequately equipped with resources to determine the timing of risks; that project team employees should be subjected to regular specific risk management training and; that the company should regularly evaluate project risks to promote projects' success rates.