Effect of Risk Management Practices on Project Performance: A Case of Rwanda Urban Development Project

This study aimed to assess the effect of project risk management on performance of Rwanda Urban Development Project (RUDP) in Rwanda.A descriptive and correlational research design was applied, and data analysis was conducted using SPSS to examine the relationship between project risk management practices and project performance.The R-value of 0.862 signifies a strong relationship between the independent variables and project performance, as values above 0.7 indicate a strong effect.The R-Square value of 0.742 indicates that 74.2% of the variations in project performance are explained through project risk identification, risk analysis, response planning, monitoring and control.A unit increase in project risk identification results in a 0.249 increase in project performance ( = 0.249, t = 4.195, p = 0.000), confirming its significance.A unit increase in project risk analysis leads to a 0.217 increase in project performance ( = 0.217, t = 2.771, p = 0.006), reinforcing its role in reducing project uncertainties.Project risk response planning contributes positively, with a unit increase leading to a 0.272 rise in project performance ( = 0.272, t = 3.151, p = 0.002), demonstrating its importance.Likewise, project risk monitoring and control positively impacts project performance.With a unit increase resulting in a 0.204 increase ( = 0.204, t = 3.029, p = 0.003).The study recommended that project managers establish a detailed scope definition framework and ensure strict adherence to guidelines throughout execution to prevent scope creep and maintain project focus.