MODEL OF MULTI-ATTRIBUTE EVALUATION UNDER RISK

The process of evaluation of strategic plans investments, development and innovation projects proceeds under conditions of risk and uncertainty. The assumption of an environment without risk and uncertainty for these strategic decisions is very simplistic. On the other hand, tools and approaches to support decision making under conditions of risk, usually offers only mono-attribute evaluation approach. This assumption (only one attribute/criterion for evaluation) is also simplistic. The paper will be illustrated a normative approach of multi-attribute decision making under risk. This approach combines the tools and approaches of multi-attribute evaluation under certainty with tools and approaches to decision making under risk. The model will be illustrated by a specific example. The model is based on a combination of tools for multi-attribute decision-making with the approaches of decision-making under risk; the model uses a subjective probability distribution of risk factors, decision matrices, scenarios and Monte Carlo simulation.