Value at Risk Within Business Processes: An Automated IT Risk Governance Approach

Conference paper
Part of the Lecture Notes in Computer Science book series (LNCS, volume 9850)

Abstract

Business processes are core operational assets to control firms’ efficiency in value generation. However, the execution and control of business processes is increasingly dependent on Information Technology (IT). Therefore, the risks that arise from relying on IT in business processes must be quantified. This paper proposes the adaptation of the Value at Risk (VaR) financial technique to measure the level of risk within a process portfolio. This is done by quantifying the impact resulting from changes in the performance of IT services. The probability of IT risks is measured daily in order to model the volatility of IT services, especially when they are flexible and changeable. The proposed method enables predicting and estimating the losses of IT risks and their effect on dependent business processes over a time horizon. The incorporation of risk management mechanisms enriches business processes with organizational management capabilities.

Keywords

Risk analysis Process portfolio IT assets Value at risk 

Notes

Acknowledgments

The authors would like to thank Fabian Arias who collaborated in the validation of this work.

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Copyright information

© Springer International Publishing Switzerland 2016

Authors and Affiliations

  1. 1.Systems and Computing Engineering Department, School of EngineeringUniversidad de los AndesBogotáColombia

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