AHP: Risk Assessment and Mitigation Strategy Selection in an Information Technology Company

Here’s an example of a decision-making problem related to education: Risk Assessment and Mitigation Strategy Selection in an Information Technology Company

Using the AHP method, decision-makers would establish pairwise comparisons between the criteria and alternatives. Through a series of pairwise comparisons, a judgment matrix is created, and numerical weights are assigned to each criterion and alternative.

The AHP analysis would then compute the priority or relative importance of the criteria and alternatives, helping decision-makers make informed decisions about risk assessment and mitigation strategy selection. The weights derived from the AHP analysis provide a rational basis for evaluating and prioritizing the alternatives based on the identified criteria.

By applying the AHP method in this example, the information technology company can systematically assess risks, evaluate mitigation strategies, and select the most appropriate course of action based on their priority and relative importance in addressing the identified risks.

1. Objective

Risk Assessment and Mitigation Strategy Selection in an Information Technology Company

2. Determining the model, criteria and alternative

In this step, the model, criteria and alernatives are determined:

model: AHP
Number of Criteria: 5
Number of subcriteria : 3
Number of Alternatives: 5

Criteria names:

Program Reputation

Faculty Quality

Research Opportunities
Job Placement Rate
Cost of Attendance

Subcriteria:

Early Warning Signs

Reporting and Alert Systems
Response Capability

Alternatives:

Stanford University Computer Science Program
Massachusetts Institute of Technology (MIT) Computer Science Program
Carnegie Mellon University Computer Science Program
University of California, Berkeley Computer Science Program
California Institute of Technology (Caltech) Computer Science Program

3. Pairwise comparison table

After determining the criteria and alternatives, the Pairwise comparison table matrix is formed. In the paired comparison table, the parameters (criteria or alternatives) are compared in pairs .The table below shows the pairwise comparison tables.

	Impact	Detectability	Criticality	Cost
Probability	1	2	5	7
Impact		2	3	0.25
Detectability			3	2
Criticality				2
Cost

	Reporting and Alert Systems	Response Capability
Early Warning Signs	1	2
Reporting and Alert Systems		6
Response Capability

	Business Continuity Planning	Cybersecurity Enhancement	Training and Awareness Programs	Risk Transfer through Insurance
Risk Assessment and Control Framework Implementation	2	3	5	7
Business Continuity Planning		4	4	2
Cybersecurity Enhancement			1	1
Training and Awareness Programs				0.05
Risk Transfer through Insurance

	Business Continuity Planning	Cybersecurity Enhancement	Training and Awareness Programs	Risk Transfer through Insurance
Risk Assessment and Control Framework Implementation	1	1	3	4
Business Continuity Planning		5	5	2
Cybersecurity Enhancement			1	2
Training and Awareness Programs				4
Risk Transfer through Insurance

	Business Continuity Planning	Cybersecurity Enhancement	Training and Awareness Programs	Risk Transfer through Insurance
Risk Assessment and Control Framework Implementation	2	2	3	5
Business Continuity Planning		6	4	1
Cybersecurity Enhancement			2	2
Training and Awareness Programs				3
Risk Transfer through Insurance

	Business Continuity Planning	Cybersecurity Enhancement	Training and Awareness Programs	Risk Transfer through Insurance
Risk Assessment and Control Framework Implementation	2	3	3	5
Business Continuity Planning		7	7	4
Cybersecurity Enhancement			2	1
Training and Awareness Programs				1
Risk Transfer through Insurance

	Business Continuity Planning	Cybersecurity Enhancement	Training and Awareness Programs	Risk Transfer through Insurance
Risk Assessment and Control Framework Implementation	1	5	5	4
Business Continuity Planning		3	2	7
Cybersecurity Enhancement			0.25	4
Training and Awareness Programs				1
Risk Transfer through Insurance

	Business Continuity Planning	Cybersecurity Enhancement	Training and Awareness Programs	Risk Transfer through Insurance
Risk Assessment and Control Framework Implementation	5	4	2	2
Business Continuity Planning		1	3	3
Cybersecurity Enhancement			4	2
Training and Awareness Programs				1
Risk Transfer through Insurance

	Business Continuity Planning	Cybersecurity Enhancement	Training and Awareness Programs	Risk Transfer through Insurance
Risk Assessment and Control Framework Implementation	2	3	7	5
Business Continuity Planning		1	3	5
Cybersecurity Enhancement			2	4
Training and Awareness Programs				2
Risk Transfer through Insurance

4. Run software:

The data is placed in the software and the software is executed. The following video shows the implementation of the software:

5. Get Result

In this step, you can see the result of the report. The report is presented in three types of formats: online report, Excel and Word. You can view or download three types of formats below.

In the output report, there are all the steps of AHP step by step along with the relevant table.