Research On Appraising The Managing Priority Of Risk

Faced with a large number of risks of a project, the managers need to take it into account that whether every risk is worth of and necessary to be dealing with, that whether there is a part of them should be prior to be managed, and that which risk or which part of risks are the priorities. The resources to risk management-including fund, human and time- is limited, hence in order to obtain the maximum risk management outcome, it is needed to distribute these resources. And the basis of the distribution is the management priority of risk.Firstly the existing studies are summarized. After that the dissertation redefines the notion of Management Priority of Risk from the standpoint of management and insists that the management priority of risk is a managing attribute of a risk. Based on which the paper puts emphasis on how to measure the priority. From the general logic of building the standards of an integrated appraisal, the paper inquires the logic to build the measure standards to the management priority of risk, and according this logic the self-attribute and the managing attribute are supposed to be the standards. Where after the paper establishes four appraising indices: Possibility, Urgency, Controllability and Efficiency. For the sake of the limitation of product effect of the Probability-Effect Matrix, the paper adopts the Ideal Point Method which is often used in Multiple Attribute Decision Making. At last a project example is put to proof the indices and method proposed by the dissertation.