External stakeholder risk response strategies selection in project portfolio

To improve the effectiveness of external stakeholder risks (ESRs) management in project portfolios (PPs), a portfolio-wide risk response approach is required. However, current research is inadequate to effectively identify response strategies for ESRs, which brings challenges to managing ESRs in PPs. In this context, the purpose of this study is to select an appropriate combination of response strategies for ESRs by considering interactions among ESRs, projects, and response strategies in the PP. A Bayesian influence diagram (BID) coupled with a multi-objective optimization model is deemed suitable for this context. Firstly, a probability-sensitivity matrix is established to determine the key ESRs. Then, a BID is constructed to calculate the expected values of different combinations of response strategies. Finally, integrating stakeholder satisfaction and strategy cost, an optimization model for risk response strategy selection is established to obtain candidate combinations. By combining expected values and candidate combinations, the optimal strategy combination is selected. The proposed model comprehensively considers and evaluates the interactions between risks, projects, and risk responses. This enhances the desirability of expected outcomes and reduces project execution costs.