Using fuzzy FMEA and fuzzy logic in project risk management

Abstract

Risk management is one of the most important phases of project management and is<br />the most recently used by many researchers. In this paper, a fuzzy based method was<br />proposed which identifies different kinds of risks through the project life cycle.<br />Then, the project risk magnitude can be obtained in regards to five factors, namely<br />“severity", “occurrence", and “not detection" which form fuzzy FMEA and also two<br />other factors namely project phase weights and risks weights. These two factors in<br />addition to risk priority number (RPN) factors can lead to the application of better<br />risk management. Based on the project risk magnitude, the appropriate risk response<br />should be selected. The proposed model covers three parts of risk management<br />process: 1. Risk identification, 2. Quantitative risk analysis and 3. Risk response<br />planning. Finally, this model was applied by a numerical example, and project risk<br />magnitude was calculated for an assumed company, to verify the proposed method.