Prioritizing risks based on multicriteria decision aid methodology: Development of methods applied to ALSTOM power

Similar to other multinational companies, ALSTOM (Switzerland) has been using a methodology based on the Probability Impact Diagram (PID) to prioritize risks. Nevertheless, available studies indicate that this approach might generate inconsistencies in ranking risks. This study proposes an alternative risk-rating model based on a multiple-criteria decision aid methodology denominated Measuring Attractiveness by a Categorical Based Evaluation Technique (MACBETH). The proposed method is applied to the construction phase of Power Plant projects at ALSTOM, and the MACBETH methodology is then compared with the PID methodology in terms of process, method and tool compatibility. Analysis shows the adequacy of the multiple-criteria methodology to prioritize risks.