Using fuzzy FMEA and fuzzy logic in project risk management

Risk management is one of the most important phases of project management and is the most recently used by many researchers. In this paper, a fuzzy based method was proposed which identifies different kinds of risks through the project life cycle. Then, the project risk magnitude can be obtained in regards to five factors, namely "severity", "occurrence", and "not detection" which form fuzzy FMEA and also two other factors namely project phase weights and risks weights. These two factors in addition to risk priority number (RPN) factors can lead to the application of better risk management. Based on the project risk magnitude, the appropriate risk response should be selected. The proposed model covers three parts of risk management process: 1. Risk identification, 2. Quantitative risk analysis and 3. Risk response planning. Finally, this model was applied by a numerical example, and project risk magnitude was calculated for an assumed company, to verify the proposed method.