Project Risk Mitigation and Project Execution in the Nigeria Oil And Gas Industry (original) (raw)
Related papers
2020
This study sought to examine the relationship between project risk avoidance and project execution in the Nigerian oil and gas industry. Specifically, the study examined the relationship between project risk avoidance and four components of project execution (budget, quality, schedule and scope) among 51 oil and gas companies operating in Rivers State, Nigeria. To achieve this objective, 102 managing executives were given questionnaires, with 82 questionnaires correctly filled and returned. Data obtained were analysed using mean scores and Spearman’s rank order correlation analysis. The study found that projects risk avoidance was positively and significantly related to all four components of project execution. The main implication of this finding is that oil and gas companies need to invest heavily in innovative technologies and processes that will enhance their ability to avoid risk, thus improving the quality of projects they execute. Abstrak dalam Bahasa Indonesia. Studi ini ber...
Factors Influencing Risk Management in Construction Projects in the Petroleum Industry in Kenya
2013
In the Petroleum Industry worldwide, many negative safety incidents have occurred during the implementation of construction projects. Project Risk Management can play a key role in reducing the occurrence of such incidents. However, past research has established that project risk management has not been well integrated into project management, leading to a negative impact on the safety objective in many construction projects. The problem that this study sought to address is the occurrence of incidents in projects undertaken by contractors in the Petroleum Industry in Kenya and how such incidents can be reduced by the integration of Project Risk Management into the management of construction projects. The objective of the study was to determine the factors that influence construction projects risk management in the Petroleum Industry in Kenya. Knowledge of these factors and the implementation of the recommendations of this study can contribute towards the reduction of the occurrence of such incidents. The methodology used was a census survey of the project managers of the various contractors working for the petroleum Industry in Kenya using a questionnaire. The study found that there is a significant relationship between training of project managers on project risk management and risk management practice in construction projects in the Petroleum Industry in Kenya. Even though most contractors indicated that their project managers were trained in risk management, this training is not structured and often depends on training offered occasionally by the Petroleum Companies or on-the-job training. Important aspects of training that influence risk management were found to be training policy, type of training offered and the implementation of the learning at the workplace. The study also found that there is a significant relationship between attitude towards risk and risk management in the Petroleum Industry in Kenya. Safety committee meetings, incident reporting and executive management support for safety were found to be important aspects that influence risk management to a large extent. Lastly the study found that most companies rarely carried out all steps of project risk management which ought to include planning risk management, risk
Science Journal of Business and Management
The construction industry is highly risky and clogged with many uncertainties especially with the continued surging of COVID-19 pandemic. Evidence abounds on the severity of the impact leading in increase in project abandonment, cash inflow and jobs losses. The purpose of the research is to examine the impact of risk management on project performance of construction industry in Nigeria. A quantitative research design was used and adopting a descriptive study for more in-depth into the risks and risk management issues in the industry. Survey questionnaires used in collecting data from 84 sample respondents. Data generated were analysed using simple linear regression model. The results revealed that risks (internal and external) and risk management significantly impacted on project performance. The research paper, therefore, presents the result of study conducted among the major stakeholders (contractors, consultants, and the client) of projects in Abuja, Lagos and Portharcourt all in Nigeria. In addition, the result revealed that the major problem of the construction industry in risk is the lack of a regulatory framework to be imbibed and implemented by the companies and firms in the industry. The framework is to be created and monitored by the Bureau of Public Procurement (BPP) and the monitoring process is to include risk audits, risk reassessment, risk technical performance, reserve analysis and status meeting. The study contributes to better management of risks in the construction industry to reduce impact on project performance.
Risk Management Instruments, Strategies and Their Impact on Project Success
International journal of risk and contingency management, 2013
Risk is an inseparable event or occurrence to any project and it is a consequence of uncertainties and unknowns associated with the project and its execution. Past research studies generally focused on types of risks and risk management processes. This research effort, using a survey questionnaire, is an attempt to understand types of specific risk mitigation approaches that are commonly employed and their dependency with the type of an organization. This research effort also addressed relation between risk mitigation strategy of an organization and individual project manager's propensity to risk. Research results show that project risk management plan and it development is likely to be influenced by cost and time aspects of a project but not on the project scope. Further, results revealed that many organizations depend on contingency budget rather than a formalized risk management plan.
Risk Management Strategies for Project Success
Advances in business information systems and analytics book series, 2018
As projects are associated with risks due to the presence of uncertainties and unknowns, risk management assumes importance in project success. This chapter is an attempt to examine various risk mitigation strategies that are commonly employed if different industrial sectors. The chosen risk strategy would also largely depend either on individual's or organization's propensity to take risks. The authors summarize the findings of a research study in this chapter. The research results show that effort and details of a risk management for a project are governed by risks associated with cost and time and not necessarily with the project scope. Also, many organizations prefer a contingency budget to the project plan to developing a detailed risk management plan.
Texila International Journal of Management, 2019
Project risk management is the systematic process of identifying, analyzing, and responding to risk by applying risk management principles and processes at the project level. This is seen to be a very big challenge to most project managers. Research has proven that most projects that are executed face serious challenges as far as risk is concerned due to lack of appropriate techniques in identifying and preventing risk. Therefore the study intends to evaluate risk identification and prevention techniques in ensuring project success in Electricity Company of Ghana ECG with the objective of examining how efficient and effective the Project Management Team manages risk and whether the success of project depends on effective risk management identification and prevention techniques in project management of Electricity Company of Ghana (ECG). The study intends to adopt the cross section survey technique in that it will be necessary to interview key personnel within the entire stratum of Electricity Company of Ghana (ECG) especially those activities impinge upon risk and project success. Qualitative information will be obtained and analyzed in order to address the objectives of the study. Where necessary such information will be quantified using relevant Statistical Packages for Social Science (SPSS) to enhance the direction of the study. The study seeks to find out whether project success depends on the following for effective risk management and strategies for effective project risk identification: • Risk Analysis and Evaluation • Risk Monitoring and Reviewing • Risk Communication It also seeks to find out if Electricity Company of Ghana (ECG) has a Project Risk Management Plan and Risks that are identified before projects are initiated and that if Electricity Company of Ghana (ECG) has competent project management professionals.
RISK MANAGEMENT: KEY TO SUCCESSFUL DELIVERY OF CONSTRUCTION PROJECTS IN NIGERIA
Qualitative and Quantitative Research Review, 2022
The purpose of this study is to examine the impact of risk management on the successful delivery of construction projects in the Federal Capital Territory, Nigeria. This study employed the quantitative research method, using questionnaire as a data collection instrument. A population of 648 staff spread across five construction companies selected through purposive sampling was considered. A sample size of 199 was arrived at using Yamane's (1967) sampling size technique. 100 questionnaires were administered, of which 86 were retrieved, translating to an 86% response rate. The data collected was analysed using the Statistical Package for Social Sciences (SPSS). The findings of the study revealed that market risks have a significant impact on the successful delivery of construction projects in Nigeria. It revealed that there is a positive relationship between market risks and the successful delivery of construction projects in Nigeria. However, the findings showed that technical risks have no significant impact on the successful delivery of construction projects in Nigeria. The result showed that there is a negative relationship between technical risks and the successful delivery of construction projects in Nigeria. Based on these findings, the study recommends that project managers embrace market risks, as it is anticipated that they would yield better returns and, therefore, successful
An investigation of risk management strategies in projects
Canadian Institute for Knowledge Development (CIKD)
Risk is considered as an inseparable part of any project and since all the effective factors in projects are not predictable, risk management is inevitable. One of the biggest administrative problems with internal projects is the managers’ neglect of the importance of risk management which leads to delay in projects delivery and increase of the cost of the projects. Since not all risks are regarded as threats but also as opportunities, risk management is considered as a balance factor between the loss of threats and the profit earned through opportunities. It has focused on some strategies for successful implementation of risk management in projects as well. In the risk management, the most logical way of planning is managing risk before taking risk. This study investigated risk and risk management, its aims, components, and different stages of risk to reach the expected aims and outcomes of the study.
Risk management process impacted to the project performance in oil and gas industry at Kuala Lumpur
2014
Oil and gas industry is the industry that yield profit to every nation. It will involves with various step of risk. This research study will is trying to study the relationship between the risk management processes with the project performance. This research will be conducted in Kuala Lumpur which is a hub for the management oil and gas organization. A questionnaire that contain of demographic section, personal information and any related question to the risk management that might give contribution to the project performance every employee know about. Every question will contribute to the hypothesis that already develop in the beginning of the research study. A total 100 questionnaire were distributed and about 80 are requiring representing the population of the research study. The questionnaire was distributed by using male that contain link to the online questionnaire that very helpful in collecting data. After a few week the data already collected. The first step is test the reli...
Examining Project Risk Management Challenges in Ghana
Project Management & Scientific Journal , 2019
The Construction Industry is embedded with risky situations that affect construction projects and therefore requires systematic processing to achieve project objectives and ensure business sustainability. In achieving project and business objectives, Contractors usually experiment many techniques and management practices in addressing construction risk. This study aims to assess the risk management practices of Ghanaian Contractors towards typical construction project risk factors. The risk factors (RF) were identified and their severity on construction projects assessed. The study investigated the relative use of various risk management practices and the popularity of available analysis techniques. The objectives of this research have been achieved through a questionnaire survey, which was used for data collection and the SPSS and relative importance index were employed for analysis. The results of analyzing the 41 questionnaires that were received from contractor respondents concluded that 41 out of the 42 listed risk factors were overwhelmingly identified as risk factors that significantly affect construction projects in Ghana, with the exception being "Lower work quality in presence of time constraints". The most important risk factors that affect construction projects based on the assessed severity are: Inflation, Delayed payments on contract, Difference in actual quantities and the executed quantities, Defective design and Poor safety procedures. The study findings show that contractors mostly refer to previous and ongoing similar projects for accurate program as the most effective used method for risk prevention. Close supervision of subordinates have also been found to be the most used remedial method in addressing risk factors in construction. The results however discovered that Contractors do not utilize risk analysis techniques but resort to the use of comparison of projects for the purposes of analysis. The results of this study recommended that there should be a compensation mechanism in place to mitigate or offset the impact of this risk on the financial wellbeing of the Contractor. The payment regime for executed contracts should be streamlined to offer financial stability to Contractors. The Contractor should be involved with a competent designer in the design process of projects to prevent situations where defective designs are passed to the Contractor. Contracting firms should utilize computerized approaches used for risk analysis and evaluation. Contractors should work on training their personnel to properly apply risk management principles.