A Method to Build a Risk Evaluation Weighted Indicators System and an Application Example in Online Shopping Risk Evaluation

FMEA (Failure Mode and Effects Analysis) is widely used to evaluate risks and the measurement in complex projects during design stage. But for some cases where the decision is not so complex, a simple result of risk evaluation such as a comprehensive score is more helpful, e.g. when evaluating and comparing the online shopping risks related to different retailers to help the consumers make choice, it’s better to provide a comparable trustfulness score with every retailer. Though such cases are common, seldom research has been focused on them. One convenient and common method is to design a risk evaluation system including several weighted indicators and the rating standards for every indicator, by which it’s much easier to repeat the process to evaluate many objects. In this article, one method to build a risk evaluation indicators system that guarantees the proportional relationship between the resulting score and the expected risk loss is proposed and is adopted in online retailing trustfulness evaluation as an application example.