Choice of countermeasures in project risk management using fuzzy modelling

Abstract

The paper proposes a new method for project risk management. It is proposed how, after risk identification, the countermeasures for risk mitigation and elimination can be selected, taking into account the cost and effort linked to them as well as the weights assigned by the decision maker to risk attributes, such as probability or consequences, and the values of those attributes. The risk attributes and weights, as well as the maximal total risk and the maximal total effort of risk mitigation accepted by the decision maker for the project are expressed as fuzzy numbers, which in turn constitute models for linguistic expressions.