Project Risk Management includes the processes of conducting risk management planning, identification, analysis, response planning, response implementation, and monitoring risk on a project. The objectives of project risk management is to increase the probability and/or impact of positive risks and to decrease the probability and/or impact of negative risks, in order to optimize the chances of project success.(PMBOK 6th Edition). Risk Management is an integral component in the performance of any project including information system projects. The Kenyan Banking, and Financial Services sector in general is highly regulated and therefore inherently conservative. It’s an industry where a commitment to undertaking Information System Projects that are innovative in nature is detrimental and poses significant risk to the Institution in the event of failure. The Central Bank of Kenya (CBK) has issued a Guidance Note on Cyber security to address Technology and cyber risks and the associated reputational risk arising .The Standish Group report 2019: 83.9% of IT projects partially or completely fail. According to Standish only 16.2% of projects were deemed successful by being completed on time and budget, with all the promised functionality. A majority of projects, or 52.7%, were over cost, over time, and/or lacking promised functionality. That leaves 31.1% to be classified as failed, which means they were abandoned or cancelled. This paper seeks to determine the practice of risk management in Information System projects in a Kenyan Banking sector contest and its contribution to performance of the Projects. The argument in this paper will aid project managers and different stakeholders in the Banking sector in managing Risks that are related to the IT projects and increase project success rate by implementing adequate risk control models. With increased competitive nature of banking in Kenya and the Digitization of Banking processes, Banks cannot avoid undertaking IT related projects.

The option of risk management practice in prformance of information tecnology (it) projects in the Kenyan Banking sector

Undertaking an information technology project in a banking environment is a complex task. Studies globally and locally indicate a high failure rate of information technology projects. Standish group report 2019 states that 83.9 percent of information technology projects partially or completely fail. The majority of projects 52 percent were over budget, overdue, or lacked promised functionality. Previous studies indicate information technology projects in commercial Banks in Kenya experience the same project performance variations, as projects are either delayed, over budget or have issues with functionality. Risk is a factor that challenges project performance. Project risk management includes risk identification, analysis, response, and monitoring and control of risk in a project. The overall goal of this study was to examine the relationship of risk management and information technology project performance in Kenyan commercial banks, taking into account the moderating effect of project complexity and the mediating effect of risk culture, both of which had been largely overlooked in previous research hence filling a research vacuum. The target population was forty projects in Kenyan commercial banks in Kenya which made the unit of analysis. Stratified and simple random sampling technique was used. Stratified and simple random sampling technique was used. Questionnaires were used to collect the data from the targeted one hundred and eight respondents. The instrument was tested for reliability by use of Cronbach's alpha coefficient of internal consistency test and validity by use of selected information technology project professionals' review. Drop and pick method of administering questionnaires was used so as to allow respondents enough time to go through the questionnaires and give their responses. An option of online questionnaires was also available to respondents. Based on a survey, the research used both descriptive and explanatory analysis designs. The association between risk analysis and performance of information technology projects in Kenyan commercial banks was investigated using multiple regression. Quantitative data was analyzed using multiple regression analysis model software tool SPSS Version 25. The study adopted empirical model of least squares method while testing the hypotheses. The researcher conducted diagnostic tests of Normality, Linearity, Homoscedasticity and Multicollinearity to see if the data conforms to the basic assumptions of linear regression. The findings were presented using statistical parameter estimates. Tables and figures were used to present data, and supported by explanatory annotations. The results indicated that risk analysis had significant effects on the performance of information technology projects in the banking sector. The study recommends that banks should consider implementing and fully operationalize risk analysis in information technology projects. The Central Bank of Kenya should also consider putting in place an information technology projects risk policy framework to aid the banks in project undertakings. The finding in this research will aid project managers and different stakeholders in the banking and related sectors in managing information technology projects risks and hence increase the success rate of the projects. The knowledge gap is also addressed by scholarly work that has resulted from this research by providing statistical data analysis and explanations on the IT project performance in relation to risk analysis influence in commercial banks in Kenya.

/pdf/influence-of-risk-analysis-as-a-risk-management-practice-on-2bc7478j.pdf

Influence of Risk Analysis as a Risk Management Practice on Project Performance in Kenya Commercial Banks

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The option of risk management practice in prformance of information tecnology (it) projects in the Kenyan Banking sector

Influence of Risk Analysis as a Risk Management Practice on Project Performance in Kenya Commercial Banks