Title: Building an integrated multi-criteria decision-making model based on DEMATEL and ANP for selecting the risk management system of banking

Authors: Wen-Hsien Tsai, Wen-Chin Chou

Addresses: Department of Business Administration, National Central University, Jhongli, Taoyuan 320, Taiwan. ' Department of Accounting, Yu Da University, Chaochiao, Miaoli 361, Taiwan

Abstract: Since the revelation of the Enron scandal in 2001, enterprise risk management has become increasingly important for any organisation. This paper proposes an integrated multi-criteria decision-making model for selecting the risk management system of banking. This model first applies the Decision-Making Trial and Evaluation Laboratory to deal with the interdependencies among evaluation criteria. It then uses the analytic network process to select a best alternative. Additionally, up on comparing the results obtained with the proposed model to those obtained using the analytic hierarchy process; it can be noted that interdependencies indeed affect real decisions.

Keywords: ERM; enterprise risk management; banking risks; enterprise development; DEMATEL; multi-criteria decision making; MCDM; ANP; analytical network process; AHP; analytical hierarchy process.

DOI: 10.1504/IJMED.2010.033620

International Journal of Management and Enterprise Development, 2010 Vol.8 No.4, pp.358 - 382

Published online: 08 Jun 2010 *

Full-text access for editors Access for subscribers Purchase this article Comment on this article