Investigation of Grey System Theory in Engineering Project Risk Management

Using the theory of grey clustering and grey correlation in project risk identification, the advantage and disadvantage analysis are analyzed in risk management of engineering project. The procedures of grey clustering analysis are given. Moreover, the application of grey clustering and grey relation is analyzed and discussed. Grey correlation analysis and clustering methods are proposed, which is more effective quantitative analysis on project risks management. Principles of grey relational analysis are introduced and compared with mathematical and statistical methods. Grey relational analysis method is highlighted in the fields of risk management advantages. Using grey relational analysis, the ideas of grey cluster similarly associated with the grey relation are analyzed. The advantages of grey clustering method are emphasized comparing with the average method and fuzzy recognition method.