Project portfolio selection and projects ranking represent difficult decisions in organizations due to many factors. One of the most important of these factors is varying levels of projects risk. The manager has many alternative projects to pursue and the objective is to minimize total risk of projects. In this paper, an organized framework for project portfolio selection presented through a new method based on Failure Mode and Effect Analysis (FMEA), Shannon Entropy approach (SEA), and

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... e of Order Preference Similarity to the Ideal Solution (TOPSIS). The project ranking method proposed in this paper is a technique for organizations to rank the projects and select the best candidate by multi-criteria approach. The FMEA is used to analyze project risks. The Risk Priority Number (RPN) are determined as the criteria and their weights calculated by SEA. Finally, TOPSIS method is used to set final ranking. To measure the usability and quality of the proposed method a typical project ranking problem is presented. The results reveal that the proposed method can effectively be used for project ranking.