engleski

ERA Metamodel of the Analytical Hierarchy Process and Risk Matrix

This paper has been motivated by the project Ivanscica for a better tomorrow which was supported by the European Commission funds. The main goal of the project was to build a dialogue between the City of Zlatar and the City of Ivanec. To achieve that, several alternatives were proposed, and decision has been made by using the AHP. To successfully implement the decision, risk analysis was done. This integrated approach applied on the project became a trigger to propose general framework of integration of those two methods – which is the main goal of this paper. In general, after a specific strategic decision has been made, the process of its implementation starts. However, before the implementation of the strategic decision, it is recommended to conduct a risk analysis. First, this is necessary for predicting possible risks, that is, situations or events that might threaten the process of implementation and the decision effects. Second, the classification of risks in terms of two variables must be done. Those two variables are the probability of risk occurrence and the strength of the risk’s negative effect on the implementation process. Last, the activities of risk management must be defined. In this paper, after providing a theoretical background, we present an entity- relationships-attributes (ERA) model of two complementary methods: the analytical hierarchy process (AHP) method (used for strategic multi- criteria decisionmaking) and a risk matrix (used for risk management). In the practical part, we provide an overview of how those two methods have been used in the case mentioned project.

AHP ; risk matrix ; ERA ; local government unit

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