Quantitative Metrics to Assess and Manage Business Contracting Risk Using Risk-O-Meter Software

10.6702/ijbi.2016.11.1.1

Mehmet Sahinoglu；David Ang；Scott Morton；Preethi Vasudev；William Kramer

Business contracting risk ； quantitative ； Risk-O-Meter ； cost ； game theory

International Journal of Business and Information

11卷1期（2016 / 03 / 01）

1 - 26

英文

The risk factors that affect business operations are many. Identifying and managing those vulnerabilities and threats scientifically are key to conducting successful business operations. Failure to identify and manage these sources of risk will have very real consequences ranging from poor financial performance to business collapse. The current study proposes a software tool to facilitate assessment and management of business risk. This tool – the Business Risk-O-Meter – provides a critical aid for management and high-level decision makers. Using game theory and statistically driven methodologies, the Risk-O-Meter provides objective, quantitative risk assessment, and, unlike any other tool available today, it offers guidance for allocating resources for cost-effective risk mitigation. It will therefore assist managers and decision makers in commerce and industry in their efforts to achieve optimal business operations by effectively assessing and managing risk.

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