Development of a risk measure as a sustainable project selection criterion

SUMMARY

Sustainable decision-making requires consideration of technology, ecology, and the social and political infrastructure of society. While it may never be possible to identify with certainty what is sustainable and what is not, an attempt has been made in this paper to formulate a measure that permits one to compare the performances of project alternatives with respect to risk. An algorithm is presented for the evaluation of a risk criterion that can be used with other criteria in the process of selecting project alternatives. The intent of the risk criterion is to involve project stakeholders in the process of quantifying the risks associated with different project alternatives.

Key words:

• sustainability
• decision-making
• criteria
• risk