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The primary purpose of this research was to study the impact of major risk factors which are identified particularly in high rise building construction sites. 32 high rise buildings were evaluated using the questionnaire prepared and experts from 4 selected high rise building construction sites participated in the interview. The study revealed the major risk factors affecting the performance of the high rise building construction industry which is thriving in Addis Ababa, which are Inflation and Exchange rate fluctuation, Incorrect plan of work, cost, schedule and quality, poor use of advanced software, Importation, customs and visa issues, Permit requirements. Based on the DEMATEL assessment undertaken 16 of the risk factors were found to be cause factors while the remaining were effect groups.