Integrating Risk Management into Management Control Systems: Lessons for CDF Project Managers in Choma District

Abstract

The primary objective of this research is to examine the integration of risk management within Management Control Systems (MCS) and establish practical lessons for Constituency Development Fund (CDF) project managers in Choma district. Despite the critical importance of risk management, many organizations struggle to systematically embed these practices into their control systems. This study addresses this gap by analyzing the current state of risk integration and its impact on project performance. Further, this study adopts a concurrent mixed-methods approach for data collection which entails that qualitative and quantitative data was collected simultaneously. Quantitative data were gathered through structured questionnaires whereas qualitative data were collected through in-depth semi-structured interviews. The study found that CDF projects encounter various risks which include project misalignment, contractor issues, financial and technical risks, political interference, and operational and cultural challenges. The study also found a high probability of occurrence of these risks with 47.6% as high, 14.6% as very high and 39.0% as neutral. The impact of the risks was also found to be significantly high with 31.7% as high and 18.3% as very high. The study further found that the challenges faced in the management of these projects were non-identification of risks as well as logistical challenges. The study concludes that critical success factors for effective risk management integration include strong leadership commitment, continuous training and development, adequate resource allocation, and a culture that encourages proactive risk identification and mitigation. Based on these findings, the study proposes and recommends a framework for enhancing risk management integration within MCS of CDF projects, emphasizing the alignment of risk management with organizational strategy, continuous monitoring, adaptive learning and policy improvement. This research contributes to the body of knowledge by providing empirical evidence on the importance of integrated risk management within MCS and offering practical recommendations for project managers and organizational leaders in the context of CDF projects.