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

Eliana Judith Yazo-Cabuya (), Asier Ibeas and Jorge Aurelio Herrera-Cuartas
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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

Sustainability, 2024, vol. 16, issue 11, 1-26

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).

Keywords: organizational risk management; organizational risks with a focus on sustainability; multi-criteria decision making (MCDM); VIšekriterijumsko KOmpromisno Rangiranje (VIKOR); analytical hierarchy process (AHP); analytical network process (ANP); operational excellence management system (OEMS) (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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