Authors: Rabihah Md. Sum
Addresses: Faculty of Business and Economics, Department of Applied Finance and Actuarial Studies, Macquarie University, NSW 2109, Australia
Abstract: This research discusses the possibility of using analytic hierarchy process (AHP) as a decision making tool for risk management. AHP is widely applied in supply chain risk management and project risk management. The application of AHP in risk management has not yet been explored. Risk management is an established and accepted process as evidenced by much research in this area and published regulations and standards. Despite this, decision making in risk management tends to be informal depending on intuition and marked by an absence of formal analyses. To see if AHP can be applied to risk management, a distinction between risk management and risk management decision making is made. Potential application in risk management is discussed. An example of risk management decision making problem is presented, to show how AHP structured a risk management decision making problem.
Keywords: risk management; decision making; AHP; analytical hierarchy process; multicriteria decision making; MCDM; international business; business risks; strategic risks.
Journal for International Business and Entrepreneurship Development, 2015 Vol.8 No.2, pp.108 - 127
Available online: 06 Jul 2015 *Full-text access for editors Access for subscribers Purchase this article Comment on this article