ENHANCING PROJECT PRIORITIZATION THROUGH THE INTEGRATED RISK-ORIENTED PROJECT PRIORITY METHOD (IROPPM): A CASE STUDY OF A LARGE ENGINEERING SERVICES COMPANY
DOI:
https://doi.org/10.31732/2663-2209-2026-81-271-283Keywords:
IROPPM, project prioritization, project management, fuzzy logic, analytic hierarchy process, risk assessment, multi-criteria decision-making, sustainable developmentAbstract
The relevance of this study is driven by the increasing complexity of project portfolio management in engineering service organizations, where traditional financially-centered prioritization models fail to account for cascading risk effects, strategic alignment, and environmental-social dimensions of project value. The aim of the study is to develop and pilot-test the Integrated Risk-Oriented Project Priority Method (IROPPM), which combines financial metrics, strategic alignment, environmental-social factors, and risk assessment into a unified priority index. The methodology is based on the multi-criteria decision-making paradigm: IROPPM employs fuzzy logic calibration to mitigate subjective discrepancies, the Analytic Hierarchy Process (AHP) for deriving weight coefficients, and Monte Carlo simulation for risk assessment. In a pilot application at a large Ukrainian engineering services company processing over 200 daily service requests, the method was implemented through an integrated ERP-BPMS platform providing real-time data from financial records and operational processes. Results for 50 evaluated projects indicate statistically significant portfolio regrouping (p<0.05 by Wilcoxon signed-rank test): approximately 60% of initiatives shifted ranks by more than two positions, corresponding to an estimated 15% improvement in organizational goal alignment and approximately 12% reduction in risk impact as assessed by an expert panel. Future research directions include integrating machine learning algorithms for dynamic weight updating, scaling the method to larger portfolios, and testing in alternative domains. The findings have practical significance for housing and utility services companies, where project prioritization is inseparably linked with financial risk management and operational dispatching efficiency.
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