Risk assessment in construction projects portfolio management by Critic MCDM method

Document Type : Original Article

Authors

1 Phd condidate, Department of civil engineering, Kish international Branch, Islamic Azad University, Kish island, Iran

2 Assistant Professor, dept. civil engineering, Safadasht Branch, Islamic Azad University, Safadasht, Iran

3 Assistant Professor, Department of Civil Engineering, Roudehen Branch, Islamic Azad University, Roudehen, Iran

Abstract

The project portfolio is to transfer the strategic needs of the organization to projects and operational activities. If portfolio risk occurs, it can affect the portfolio success metrics and overshadow the achievement of the organization's strategic goals. Despite the important role of portfolio risk management in the success of an organization, no proper analysis of project portfolio risks has been provided yet. The purpose of this study is to investigate the importance of portfolio risks and, selection of the best portfolio risk management strategy using multi-criteria decision-making methods.

Due to the ignorance of portfolio level risks, the first step of this research is to identify and select important portfolio risks of projects based on previous studies in this field. The importance of risks in different portfolio management strategies was then assessed using a questionnaire from a group of elites. In this study, the CRITIC method, which is a multi-criteria decision-making method has been used to determine the weight of each risk, during which the importance of each risk is calculated without direct questions from experts, and only using the scores given to each risk in different strategies. After that, different portfolio risk management strategies will be identified and, the best risk management response will be calculated and selected.

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References

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History

  • Receive Date: 11 March 2023
  • Revise Date: 25 May 2023
  • Accept Date: 02 July 2023

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