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Integration of Sustainability in Risk Management and Operational Excellence through the VIKOR Method Considering Comparisons between Multi-Criteria Decision-Making Methods

Author

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  • Eliana Judith Yazo-Cabuya

    (Facultad de Ciencias Naturales e Ingeniería, Universidad de Bogotá Jorge Tadeo Lozano, Carrera 4 #22-61, Bogotá 110311, Colombia)

  • Asier Ibeas

    (Departamento de Telecomunicaciones e Ingeniería de Sistemas, Universitat Autònoma de Barcelona, 08193 Barcelona, Spain)

  • Jorge Aurelio Herrera-Cuartas

    (Facultad de Ciencias Naturales e Ingeniería, Universidad de Bogotá Jorge Tadeo Lozano, Carrera 4 #22-61, Bogotá 110311, Colombia)

Abstract

In the current context, organizations face an important challenge in managing risks related to environmental, social and governance (ESG) issues. This research presents a general method for prioritizing organizational risks with a focus on sustainability based on the characterization of five typologies of organizational risks and their respective sub-risks, based on an analysis of global reports. Subsequently, paired surveys are administered to a group of experts from various sectors, who assign importance to the organizational sub-risks. Their responses serve as the basis for the prioritization of these risks, using the VIšekriterijumsko KOmpromisno Rangiranje (VIKOR) method, which highlights the following most relevant organizational sub-risks for each type of risk: (1) Lack of ethics in the conduct of business (geopolitical risk); (2) Deficit in economic growth (economic risk); (3) Chemical safety (social risk); (4) Massive data fraud or theft incidents (technological risk); and (5) Water depletion (environmental risk). Additionally, a sensitivity analysis is performed to determine the robustness of the results of the VIKOR method and then compare the correlation coefficients with respect to the results obtained in previous studies for the AHP and ANP methods. Finally, we propose the implementation of a model to manage organizational risks, which are addressed proactively through an integral vision, allowing for continuous improvement and alignment with corporate strategy by means of an operational excellence management system (OEMS).

Suggested Citation

  • Eliana Judith Yazo-Cabuya & Asier Ibeas & Jorge Aurelio Herrera-Cuartas, 2024. "Integration of Sustainability in Risk Management and Operational Excellence through the VIKOR Method Considering Comparisons between Multi-Criteria Decision-Making Methods," Sustainability, MDPI, vol. 16(11), pages 1-26, May.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:11:p:4585-:d:1404012
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    References listed on IDEAS

    as
    1. Daimi, Sarra & Rebai, Sonia, 2023. "Sustainability performance assessment of Tunisian public transport companies: AHP and ANP approaches," Socio-Economic Planning Sciences, Elsevier, vol. 89(C).
    2. Borgonovo, Emanuele & Plischke, Elmar, 2016. "Sensitivity analysis: A review of recent advances," European Journal of Operational Research, Elsevier, vol. 248(3), pages 869-887.
    3. Opricovic, Serafim & Tzeng, Gwo-Hshiung, 2004. "Compromise solution by MCDM methods: A comparative analysis of VIKOR and TOPSIS," European Journal of Operational Research, Elsevier, vol. 156(2), pages 445-455, July.
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