Application of Gray Analytic Hierarchy Process in Project Risk Evaluation

Abstract

The project risks can be evaluated by Analytic Hierarchy Process however this method is not flexible. Based on the introduction of Gray System Theory and the improvement of Analytic Hierarchy Process, Gray Analytic Hierarchy Process was proposed in this paper to evaluate project risks effectively. The basic steps of Gray Analytic Hierarchy Process were given, and the example, using this method to evaluate a specific project risks, was also given. This example showed that Gray Analytic Hierarchy Process could provide a basis for risk aversion by establishing gray hierarchy model and implementing the importance ranking of risks. So Gray Analytic Hierarchy Process was an effective method to evaluate project risks. This method was more flexible and more consistent with the objective laws than AHP.