Effectiveness of Early Risk Assessment in Enhancing IT Project Success in Sri Lanka

Abstract

The importance of effective risk management has been rising in Sri Lanka as the organizations strongly rely on Information Technology (IT) projects for digital transformation and competitiveness. The sector is growing but IT projects still have cost overrun, project delays, failures of requirements, technical challenges and problems with achieving desired outcomes. The aim of this study is to analyze the effects on Early Risk Identification and Risk Response on IT Project Success in Sri Lanka and to investigate opportunities to improve the IT Project Risk Management in the context of technology and existing frameworks. The positivist philosophy used deductive approach, mono method quantitative design, cross section time horizon and survey strategy were used. The data was gathered by structured questionnaires from IT project professionals. It is observed that there were 384 targeted respondents, out of which 374 responses were received, corresponding to 97.39% response rate. The reliability measure for Early Risk Identification, Risk Response and IT Project Success was very high (α = 0.931, α = 0.848, and α = 0.948, respectively). The regression analysis revealed a high level of correlation (R = 0.868) among the predictors and project success, with 75.4% of the project success explained by the predictors (R² = 0.754). Early Risk Identification (β = 0.564, p < 0.001) and Risk Response (β = 0.371, p < 0.001) were significantly associated with project success. The results highlight early risk management in the institutions, professional training, tools assisted by technology, stakeholders’ participation and recognized risk management standards.