Kenyatta University, School of Business
Online published on 25 August, 2021.
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.
