A Multi-Criteria Decision-Making Approach with Interval Numbers for Evaluating Project Risk Responses

The risk response development is one of the main phases in the project risk management that has major impacts on a large-scale project’s success. Since projects are unique, and risks are dynamic through the life of the projects, it is necessary to formulate responses of the important risks. Conventional approaches tend to be less effective in dealing with the imprecise of the risk response development. This paper presents a new decision making methodology in a fuzzy environment to evaluate and select the appropriate responses for the project risks. For this purpose, two fuzzy well-known techniques, namely decision tree and TOPSIS, are extended based on multiple selected criteria, simplifying parameterized metric distance and fuzzy similarity measure. Finally, a case study in an oil and gas project in Iran is provided to show the capability and suitability of the proposed fuzzy methodology in the large-scale practical situation.