A Fuzzy Multi-Attribute Decision Making Model for Strategic Risk Assessment

• Main Authors: Rabia Arikan, Metin Dağdeviren, Mustafa Kurt
• Format: Article
• Language: English
• Published: Atlantis Press 2013-05-01
• Series: International Journal of Computational Intelligence Systems
• Subjects: Risk assessment; multi attribute decision making; fuzzy analytic hierarchy process; fuzzy logarithmic least squares method
• Online Access: https://www.atlantis-press.com/article/25868399.pdf

Risk assessment is a very important issue for an effective institution, since the lack of accurate risk assessment method or the improper risk management might cause problems to achieve institutions’ strategic objectives. There are a finite number of risks which have to be ranked considering many different and conflicting criteria. In this respect, assessing risks by relating to strategic objectives is a multi-attribute decision making problem. In this study, an integrated approach which employs analytic hierarchy process (AHP) and fuzzy logarithmic least squares method (LLSM) together is proposed for the strategic risk assessment problem. The AHP is used to analyze the structure of the risk assessment problem and to determine weights of the criteria, and fuzzy LLSM method is used to obtain final ranking. Proposed approach is applied to a problem of prioritizing risks in a public institution.