Fuzzy Approach Model to Portfolio Risk Response Strategies

Risk management and control of project risks have been the intrinsic characteristics of high-rise building projects in a changing built environment. In this research, a novel bi-objective model for the best mixture of projects is proposed. The first objective focuses on maximizing profits and efficiency of risk responses, and the second objective aims at minimizing project direct cost including machinery, human, and material costs to implement proper risk responses over a planning horizon under uncertainty. In this model, risks of the projects are controlled by time, quality, and cost constraints, and the most optimum risk response strategies (RRSs) are selected to eliminate or reduce the impacts of the risks. Thus, the combination of optimum projects with the best RRSs can be selected for an organizational portfolio model. Finally, to assess the solution method and the proposed model, the empirical result and sensitivity analysis are carried out. Ten large-scale high-rise building projects and their associated risks are evaluated as cases in this study.