Integrated Multi-Criteria Decision Making Methods in Risk Management: A Systematic Literature Review and Framework Development

Ibrahim, Muhammad Faisal; Santoso, Imam; Mustaniroh, Siti Asmaul; Astuti, Retno

doi:10.22068/ijiepr.37.1.2405

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‎ 10.22068/ijiepr.37.1.2405

Integrated Multi-Criteria Decision Making Methods in Risk Management: A Systematic Literature Review and Framework Development

Muhammad Faisal Ibrahim¹

, Imam Santoso²

, Siti Asmaul Mustaniroh²

, Retno Astuti²

1- Universitas Brawijaya , faisalibrahim.ie@gmail.com
2- Universitas Brawijaya

Abstract: (36 Views)

This study systematically reviews the application of Multi-Criteria Decision Making (MCDM) methods in risk management, aiming to map their use to the ISO 31000:2018 framework and consolidate fragmented literature into a structured synthesis. More than 3,000 studies were screened using a PRISMA-based methodology, and 104 were analyzed in depth to examine how MCDM methods support different stages of the risk management process. The findings reveal hybrid MCDM approaches significantly enhance decision-making effectiveness across multiple stages. The most frequently applied methods are the Analytic Hierarchy Process (AHP) and the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS), often combined for risk prioritization and mitigation strategy selection. The Decision-Making Trial and Evaluation Laboratory (DEMATEL) also effectively analyzes interdependencies between risk factors and mitigation strategies. Nonetheless, challenges such as expert judgment subjectivity and the complexity of integrating multiple techniques remain critical issues. Building on these insights, the study proposes a six-stage conceptual framework that integrates MCDM techniques across risk identification, analysis, evaluation, and treatment. The key contribution lies in providing a unified, adaptive, and data-driven framework that enhances comparative understanding and strengthens structured risk management practices across industries.

Keywords: MCDM, Risk Management, ISO 31000, Hybrid MCDM, Integrated MCDM