A two-phase method based on Markov and TOPSIS for evaluating project risk management strategies

Risk exists in the course of a project operation. Hence, selecting a good risk management strategy is essential for project success. In this paper, a two-phase evaluating method is proposed focusing on the characteristics of dynamic risk and multi attributes. Considering dynamic risk in a project, Markov process is used to evaluate risk in the first phase. And then, this paper explores how to select risk management strategy based on technique for order preference by similarity to ideal solution (TOPSIS) in view of completion time, cost, quality and success probability factors. Finally, a numerical example shows that this method is effective for decision making in project risk management.