A novel distributed decision-making method for project portfolio risk response considering differences in decision-maker perspectives

Risk response is an important measure for ensuring success of a project portfolio (PP). To address the limitations of the existing centralized decision-making for PP risk response, a new distributed decision-making method for PP risk response is proposed. Initially, a comprehensive risk interaction evaluation method is proposed integrating Interval Neutrosophic Sets (INSs) and Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) along with Decision-making Trial and Evaluation Laboratory (DEMATEL). Subsequently, project risk interaction evaluation in different scenarios of project decision-maker (PDM) is defined. The methods for the comprehensive evaluation of risks from the perspectives of PDM and of PP decision-maker (PPDM) are also given. Following this, a bi-level programming model is constructed in which the decision-maker of the upper layer is PPDM and that of the lower layer is PDM. A case study is conducted on a display research and development (R&D) PP to validate the feasibility of the method. The results of the case study show that PP risk response decision (PPRRD) can be affected by different scenarios of PDM and the hierarchical model can effectively resolve conflicts caused by differences in decision-making perspectives between PPDM and PDM.