IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i6p2384-d1356347.html
   My bibliography  Save this article

Integrating Sustainability into Risk Management through Analytical Network Process

Author

Listed:
  • 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)

Abstract

Sustainable risk management is becoming widely accepted, making the incorporation of environmental, social, and governance (ESG) issues into strategic planning areas crucial to a responsible business philosophy. This article aims to rank organizational sub-risks with a focus on sustainability, offering a methodology based on the analytical network process (ANP) method to improve decision-making and reduce misrepresentation in qualitative evaluation criteria. An integrated approach is presented, starting with the characterization of five risk typologies based on global reports and then prioritizing risks and sub-risks using the ANP method. The sustainability sub-risks with the highest level of prioritization for each risk typology are (1) massive data fraud or theft incident (technological risk), (2) deficit in economic growth (economic risk), (3) water depletion (environmental risk), (4) lack of ethics in the conduct of business (geopolitical risk), and (5) chemical safety (social risk). Finally, a cosine similarity analysis is developed to compare the results obtained with the results of a risk prioritization performed with the analytical hierarchy process (AHP) method. The differences between the methods generate a similar risk prioritization; the high similarity indicates the consistency of the relationships and the prioritization of the criteria showing convergence. It is essential to mention that the results should be interpreted cautiously, considering the specific context in which this methodology is developed, and we recommend a periodic verification of risks and sub-risks.

Suggested Citation

  • Eliana Judith Yazo-Cabuya & Asier Ibeas & Jorge Aurelio Herrera-Cuartas, 2024. "Integrating Sustainability into Risk Management through Analytical Network Process," Sustainability, MDPI, vol. 16(6), pages 1-28, March.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:6:p:2384-:d:1356347
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/6/2384/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/6/2384/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Daimi, Sarra & Rebai, Sonia, 2023. "Sustainability performance assessment of Tunisian public transport companies: AHP and ANP approaches," Socio-Economic Planning Sciences, Elsevier, vol. 89(C).
    2. Wolfgang Ossadnik & Stefanie Schinke & Ralf H. Kaspar, 2016. "Group Aggregation Techniques for Analytic Hierarchy Process and Analytic Network Process: A Comparative Analysis," Group Decision and Negotiation, Springer, vol. 25(2), pages 421-457, March.
    3. Labiba Noshin Asha & Ying Huang & Nita Yodo & Haitao Liao, 2023. "A Quantitative Approach of Measuring Sustainability Risk in Pipeline Infrastructure Systems," Sustainability, MDPI, vol. 15(19), pages 1-17, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michal Gluszak & Remigiusz Gawlik & Malgorzata Zieba, 2019. "Smart and Green Buildings Features in the Decision-Making Hierarchy of Office Space Tenants: An Analytic Hierarchy Process Study," Administrative Sciences, MDPI, vol. 9(3), pages 1-16, July.
    2. Andreas Schiessl & Richard Müller & Rebekka Volk & Konrad Zimmer & Patrick Breun & Frank Schultmann, 2020. "Integrating site-specific environmental impact assessment in supplier selection: exemplary application to steel procurement," Journal of Business Economics, Springer, vol. 90(9), pages 1409-1457, November.
    3. Leanda C. Garvie & David J. Lee & Biljana Kulišić, 2024. "Towards a Bioeconomy: Supplying Forest Residues for the Australian Market," Energies, MDPI, vol. 17(2), pages 1-19, January.
    4. Vijay Pereira & Umesh Bamel, 2023. "Charting the managerial and theoretical evolutionary path of AHP using thematic and systematic review: a decadal (2012–2021) study," Annals of Operations Research, Springer, vol. 326(2), pages 635-651, July.
    5. Tim H¨ofer & Rüdiger von Nitzsch & Reinhard Madlener, 2020. "Using Value-Focused Thinking and Multicriteria Decision Making to Evaluate Energy Transition Alternatives," Decision Analysis, INFORMS, vol. 17(4), pages 330-355, December.
    6. Gerda Ana Melnik-Leroy & Gintautas Dzemyda, 2021. "How to Influence the Results of MCDM?—Evidence of the Impact of Cognitive Biases," Mathematics, MDPI, vol. 9(2), pages 1-25, January.
    7. Sigifredo Laengle & Nikunja Mohan Modak & Jose M. Merigo & Gustavo Zurita, 2018. "Twenty-Five Years of Group Decision and Negotiation: A Bibliometric Overview," Group Decision and Negotiation, Springer, vol. 27(4), pages 505-542, August.
    8. Jiean Ling & Eve Germain & Richard Murphy & Devendra Saroj, 2021. "Designing a Sustainability Assessment Framework for Selecting Sustainable Wastewater Treatment Technologies in Corporate Asset Decisions," Sustainability, MDPI, vol. 13(7), pages 1-21, March.
    9. Gauss, Leandro & Lacerda, Daniel P. & Cauchick Miguel, Paulo A., 2022. "Market-Driven Modularity: Design method developed under a Design Science paradigm," International Journal of Production Economics, Elsevier, vol. 246(C).
    10. Betul Yagmahan & Hilal Yılmaz, 2023. "An integrated ranking approach based on group multi-criteria decision making and sensitivity analysis to evaluate charging stations under sustainability," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(1), pages 96-121, January.
    11. Haddad, Brahim & Díaz-Cuevas, Pilar & Ferreira, Paula & Djebli, Ahmed & Pérez, Juan Pedro, 2021. "Mapping concentrated solar power site suitability in Algeria," Renewable Energy, Elsevier, vol. 168(C), pages 838-853.
    12. Höfer, Tim & von Nitzsch, Rüdiger & Madlener, Reinhard, 2019. "Using Value-Focused Thinking and Multi-Criteria Group Decision-Making to Evaluate Energy Transition Alternatives," FCN Working Papers 4/2019, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    13. Renato Monteiro & José Carlos Ferreira & Paula Antunes, 2022. "Green Infrastructure Planning Principles: Identification of Priorities Using Analytic Hierarchy Process," Sustainability, MDPI, vol. 14(9), pages 1-16, April.
    14. Vladimír Baláž & Dušana Dokupilová & Richard Filčák, 2021. "Participatory multi-criteria methods for adaptation to climate change," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 26(4), pages 1-22, April.
    15. Schoop, Mareike (Ed.) & Kilgour, D. Marc (Ed.), 2017. "Doctoral consortium of the 17th International Conference on Group Decision and Negotiation," Hohenheim Discussion Papers in Business, Economics and Social Sciences 17-2017, University of Hohenheim, Faculty of Business, Economics and Social Sciences.
    16. Patricija BAJEC & Danijela TULJAK-SUBAN, 2017. "Selecting A Logistics Service Provider: A Definition Of Criteria That Consider The Requirements Of An External Competitive Environment," Transport Problems, Silesian University of Technology, Faculty of Transport, vol. 12(SE), pages 157-168, December.
    17. Rosa, Carmen Brum & Rigo, Paula Donaduzzi & Rediske, Graciele & Moccellin, Ana Paula & Mairesse Siluk, Julio Cezar & Michels, Leandro, 2021. "How to measure organizational performance of distributed generation in electric utilities? The Brazilian case," Renewable Energy, Elsevier, vol. 169(C), pages 191-203.
    18. Antonella Basso & Stefania Funari, 2020. "A three-system approach that integrates DEA, BSC, and AHP for museum evaluation," Decisions in Economics and Finance, Springer;Associazione per la Matematica, vol. 43(2), pages 413-441, December.
    19. Tung Gia Pham & Chau Thi Minh Tran & Hai Thi Nguyen & Ha Ngan Trinh & Ngoc Bich Nguyen & Ha Khoa Ngoc Nguyen & Tan Trong Tran & Huy Dinh Le & Quy Ngoc Phuong Le, 2022. "Land Evaluation for Acacia ( Acacia mangium × Acacia auriculiformis ) Plantations in the Mountainous Regions of Central Vietnam," Land, MDPI, vol. 11(12), pages 1-27, December.
    20. Jahangir Wasim & Vijay Vyas & Pietro Amenta & Antonio Lucadamo & Gabriella Marcarelli & Alessio Ishizaka, 2023. "Deriving the weights for aggregating judgments in a multi-group problem: an application to curriculum development in entrepreneurship," Annals of Operations Research, Springer, vol. 326(2), pages 853-877, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:16:y:2024:i:6:p:2384-:d:1356347. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.