ABSTRACT
Oil refinery construction projects are risky because of technical complexity, resource unavailability, involvement of many stakeholders and strict environmental requirements. Although project risk management has been researched extensively, practical and easily adoptable framework is missing. This study proposes an analytical framework for effective management of project risks using multiple criteria decision-making technique. Risks are identified using cause and effect diagram, analyzed using the analytic hierarchy process. Decision tree analysis allows modeling various options for risk response development and optimizes selection. The proposed method involves the decision makers throughout the decision-making process and effectively incorporates their requirements across the decision phases (identification, analysis and response development). The method could be easily adopted and applied in any project and integrated with other project management knowledge areas. The effectiveness of the proposed risk management framework has been demonstrated through a case study on oil refinery construction project in the central part of India.
