Operational Risk Management at Planning Phase and Project Performance in Tanzania

Projects are unique entities that are conducted within a specific start-point and a definite end-point and time constraint is one among its characteristics, because of its uniqueness, projects tend to face a lot of risks as they are unpredictable and inevitable hence the adoption of risk management throughout the project life cycle so that the objectives are achieved. This research intends to examine the relationship between Operational Risk Management at the planning phase and project performance in Tanzania, specifically in the Insurance industry. The objective of the study was to investigate the extent of the risk management practices at planning phase and the effect of these practices on project performance. The study targeted insurers, project managers, actuaries, and regulatory authorities in Tanzania and key clients with major investments in the insurance industry. The study used both qualitative and quantitative methods of data collection. The research project indicated projects in Tanzania had some input from qualified insurers. While the study indicated that risk management was widely practiced at 92%, the process was mainly informal. It is recommended a formal and structured risk management practice during project planning and with the involvement of insurance professionals and end users. The researcher recommends that there is need for continuous development seminars in risk management for all insurance professionals in Tanzania and especially those in insurance projects planning and procurement departments of both private and government developers. This research further recommends that qualified project managers who are either insurers or actuaries be included in all insurance projects. End users and beneficiaries should be involved in needs identification at the early stages of a project