Risk Evaluation Phase: Transactional Risk Evaluation and Decision Making in Business Activities
In the previous chapter, we proposed an approach by which the risk assessing agent ascertains the different representations and the different severity level/s in the occurrence of perceived transactional risk (transactional risk) in a business activity. The next step is for the risk assessing agent to evaluate the determined level/s of transactional risk to make a decision about his future course in forming a business association with a risk assessed agent. Alternatively, the risk assessing agent may have to make a decision about choosing an agent from a set of risk assessed agents with whom to form a business association. This occurs in the risk evaluation phase, which is the next stage in the process of risk analysis. In the risk evaluation phase, the risk assessing agent utilizes the determined severity level/s of transactional risk in forming a business association with the risk assessed agent; and then evaluates this to determine whether or not it is within acceptable or tolerable limits. In other words, by evaluating the determined level/s of transactional risk, the risk evaluation phase assists the risk assessing agent to make an informed interaction-based decision about the risk assessed agent.
KeywordsMembership Function Business Activity Risk Evaluation Fuzzy Inference System Severity Level
Unable to display preview. Download preview PDF.
- 2.Hussain, O.K., Dillon, T.S., Hussain, F.K., Chang, E.: Transactional Risk-based Decision Making System in E-Business Computing. Computer Systems Science and Engineering 25, 15–25 (2010)Google Scholar