A multi criteria decision making approach to support the risk management: a case study

Abstract

Project risk management plays a fundamental role in the project management field. Project objectives may dynamically change in time, hence it is not easy to satisfy them, especially when related to complex projects. In detail, they can be subjected to several and different risk conditions which have an important impact on the project success. In this context, multi-criteria decision making (MCDM) methods are effective tools to carry out the risk management. In particular, the present research proposes the use of MCDM with a specific focus on the ELECTRE TRI method. The last one is able to evaluate and assign projects under analysis into ordered and different risk classes. The purpose consists in extending the idea of the “probability and impact matrix” tool by adopting a multidimensional perspective. The proposed approach is applied to a case study related to an Oil & Gas project and a sensitivity analysis is shown to demonstrate the robustness of the results.