Integrated Risk-Based and Economic-Based (IRBEB) Methodology for Selection of Project Alternatives

Abstract

Selection of a most optimal project alternative in early phases of project development is paramount for overall project success. A standard practice is to make the selection based on economic considerations that overlook risk exposure of a selected alternative. Standalone risk evaluation of alternatives cannot ensure that a most optimal alternative is selected either as economic considerations may be overlooked. Moreover, both economic-based and risk-based alternative's selection methodologies cannot guaranty that all viable alternatives have been considered. This chapter introduces integrated risk-based and economic-based (IRBEB) alternative's selection methodology that includes an algorithm to generate a comprehensive set of all viable project alternatives to choose from.