An MCDM-based risk management in an Indonesian highway measurement project

Abstract

Listen

Translate article

It is crucial to assess risks in projects as considering many factors with a high degree of uncertainty for project success. Although past studies were carried out on risk management in various projects, there are still wider opportunities to develop risk management integrating between a traditional risk management and a multi-criteria decision-making (MCDM) approach. Further, it involves multiple factors as well as decision makers (DMs) that may clearly represent the real situation. Accordingly, this study aims to develop a risk management model combined with the analytic hierarchy process (AHP) demonstrated in an Indonesian highway measurement project. There are five DMs invited to identify the 45 risk factors categorized into nine groups. Then, the AHP method was employed to calculate the weight of the risk groups before a traditional risk assessment was utilized to obtain the risk scores. With the Pareto chart, the result indicated that there were 23 critical risks including the project and measurement groups and the external risks such as natural disaster, political issues, and socio-cultural conflicts that should be seriously concerned. For a further study, it is strongly encouraged to analyze the uncontrollable external factors bringing significant impact on project particularly in developing countries.