Effect of risk management practices on project performance: A case study of Nyabisindu and Nyagatovu informal settlements (RUDPII) in Gasabo district, Rwanda

Abstract

The purpose of this study was to determine the effect of risk management practices on the performance of the Nyabisindu and Nyagatovu informal settlement project. The analysis of the study included both descriptive and inferential statistics. The findings revealed that the unstandardized coefficient for Risk Identification was 0.183, indicating that a one-unit increase in Risk Identification results in a 0.183-unit increase in project performance (β = 0.183, t = 3.284, p = 0.001). The unstandardized coefficient for Risk Analysis was 0.354, showing that a one-unit increase in Risk Analysis leads to a 0.354-unit increase in project performance (β = 0.354, t = 8.317, p = 0.000). The unstandardized coefficient for Risk Response was 0.156, indicating that a one-unit increase in Risk Response results in a 0.156-unit increase in project performance (β = 0.156, t = 2.936, p = 0.004). Similarly, the unstandardized coefficient for Risk Monitoring and Evaluation was 0.268, indicating that a one-unit increase in Risk Monitoring and Evaluation leads to a 0.268-unit increase in project performance (β = 0.268, t = 4.405, p = 0.000). These results confirm that risk management components, namely risk identification, risk analysis, risk response, and risk monitoring and evaluation, have a positive and statistically significant effect on project performance. The study recommends active community engagement in identifying project needs, provision of structured training to support participatory implementation, establishment of open communication channels during project execution, and enhanced stakeholder involvement in monitoring activities under the RUDPII.