26 January 2024 | Eliana Judith Yazo-Cabuya, Jorge A. Herrera-Cuartas, and Asier Ibeas
This article presents a methodology for prioritizing organizational risks with a focus on sustainability using the DEMATEL and AHP methods. The study characterizes five types of organizational risks—geopolitical, economic, social, technological, and environmental—based on global reports and international standards. Sub-risks are identified for each type, and a group of experts from various sectors is surveyed to assess their relevance and influence. The responses are then used to apply the DEMATEL and AHP methods to prioritize risks and sub-risks. The DEMATEL method identifies the prioritization order of the five risk types as economic, geopolitical, social, technological, and environmental. The AHP method prioritizes sub-risks within each type, with the highest-priority sub-risks being massive data fraud, deficit in economic growth, water depletion, lack of ethics in business conduct, and chemical safety. A sensitivity analysis is conducted to assess the stability of the results, showing that positive values indicate minimal changes, while negative values indicate a decrease in the relative importance of sub-risks. The study highlights the importance of using multi-criteria decision-making methods to address the complexity of sustainability risks and ensures that the results are reliable and consistent. The findings provide a framework for organizations to prioritize risks and sub-risks effectively, considering both qualitative and quantitative factors. The results emphasize the need for strategic decision-making and the importance of aligning risk management with sustainability goals. The study also underscores the value of expert input in ensuring the accuracy and relevance of the prioritization process.This article presents a methodology for prioritizing organizational risks with a focus on sustainability using the DEMATEL and AHP methods. The study characterizes five types of organizational risks—geopolitical, economic, social, technological, and environmental—based on global reports and international standards. Sub-risks are identified for each type, and a group of experts from various sectors is surveyed to assess their relevance and influence. The responses are then used to apply the DEMATEL and AHP methods to prioritize risks and sub-risks. The DEMATEL method identifies the prioritization order of the five risk types as economic, geopolitical, social, technological, and environmental. The AHP method prioritizes sub-risks within each type, with the highest-priority sub-risks being massive data fraud, deficit in economic growth, water depletion, lack of ethics in business conduct, and chemical safety. A sensitivity analysis is conducted to assess the stability of the results, showing that positive values indicate minimal changes, while negative values indicate a decrease in the relative importance of sub-risks. The study highlights the importance of using multi-criteria decision-making methods to address the complexity of sustainability risks and ensures that the results are reliable and consistent. The findings provide a framework for organizations to prioritize risks and sub-risks effectively, considering both qualitative and quantitative factors. The results emphasize the need for strategic decision-making and the importance of aligning risk management with sustainability goals. The study also underscores the value of expert input in ensuring the accuracy and relevance of the prioritization process.