Evaluating high risks in large-scale projects using an extended VIKOR method under a fuzzy environment

A new risk evaluation approach based on the fuzzy set theory that is an effective tool to handle uncertainty in large-scale projects and based on an extended VIKOR method that is one of the well-known multiple criteria decisionmaking (MCDM) methods.

Abstract

The complexity of large-scale projects has led to numerous risks in their life cycle.This paper presents a new risk evaluation approach in order to rank the high risks in large-scale projects and improve the performance of these projects.It is based on the fuzzy set theory that is an effective tool to handle uncertainty.It is also based on an extended VIKOR method that is one of the well-known multiple criteria decisionmaking (MCDM) methods.The proposed decision-making approach integrates knowledge and experience acquired from professional experts, since they perform the risk identification and also the subjective judgments of the performance rating for high risks in terms of conflicting criteria, including probability, impact, quickness of reaction toward risk, event measure quantity and event capability criteria.The most notable difference of the proposed VIKOR method with its traditional version is just the use of fuzzy decision-matrix data to calculate the ranking index without the need to ask the experts.Finally, the proposed approach is illustrated with a real-case study in an Iranian power plant project, and the associated results are compared with two well-known decision-making methods under a fuzzy environment.