Probabilistic assessment of financial risk in e-business associations
Business activities are a result of carefully formed associations between different users in order to achieve certain pre-decided outcomes. Decision-making in such associations is an important step and transactional risk analysis is one of the integral processes that facilitates this step. This pape...
| Main Authors: | , , , |
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| Format: | Journal Article |
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Elsevier B.V.
2010
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| Subjects: | |
| Online Access: | http://hdl.handle.net/20.500.11937/21959 |
| _version_ | 1848750736886726656 |
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| author | Hussain, Omar Dillon, Tharam S. Hussain, Farookh Khadeer Chang, Elizabeth |
| author_facet | Hussain, Omar Dillon, Tharam S. Hussain, Farookh Khadeer Chang, Elizabeth |
| author_sort | Hussain, Omar |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | Business activities are a result of carefully formed associations between different users in order to achieve certain pre-decided outcomes. Decision-making in such associations is an important step and transactional risk analysis is one of the integral processes that facilitates this step. This paper presents an approach that determines the negative consequences (termed as financial risk) of forming e-business associations. Unlike other approaches, our model captures the different types of events and their uncertainties to determine the financial risk by using the convolution operator and expressing it as a probabilistic measure rather than as a crisp financial value. Such representation makes sense as the financial risk may be determined at a point of time in future where nothing is certain. Depending upon the complexity of the problem, we explain the different ways of using the convolution operator to determine the financial risk. The simulation result shows a better representation and understanding of the financial risk that will provide important inputs to the transactional risk analysis and the decision-making process. |
| first_indexed | 2025-11-14T07:41:35Z |
| format | Journal Article |
| id | curtin-20.500.11937-21959 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T07:41:35Z |
| publishDate | 2010 |
| publisher | Elsevier B.V. |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-219592019-02-19T04:26:46Z Probabilistic assessment of financial risk in e-business associations Hussain, Omar Dillon, Tharam S. Hussain, Farookh Khadeer Chang, Elizabeth Dependent events Financial risk Non-dependent events Performance risk Transactional risk E-business Business activities are a result of carefully formed associations between different users in order to achieve certain pre-decided outcomes. Decision-making in such associations is an important step and transactional risk analysis is one of the integral processes that facilitates this step. This paper presents an approach that determines the negative consequences (termed as financial risk) of forming e-business associations. Unlike other approaches, our model captures the different types of events and their uncertainties to determine the financial risk by using the convolution operator and expressing it as a probabilistic measure rather than as a crisp financial value. Such representation makes sense as the financial risk may be determined at a point of time in future where nothing is certain. Depending upon the complexity of the problem, we explain the different ways of using the convolution operator to determine the financial risk. The simulation result shows a better representation and understanding of the financial risk that will provide important inputs to the transactional risk analysis and the decision-making process. 2010 Journal Article http://hdl.handle.net/20.500.11937/21959 10.1016/j.simpat.2010.10.007 Elsevier B.V. fulltext |
| spellingShingle | Dependent events Financial risk Non-dependent events Performance risk Transactional risk E-business Hussain, Omar Dillon, Tharam S. Hussain, Farookh Khadeer Chang, Elizabeth Probabilistic assessment of financial risk in e-business associations |
| title | Probabilistic assessment of financial risk in e-business associations |
| title_full | Probabilistic assessment of financial risk in e-business associations |
| title_fullStr | Probabilistic assessment of financial risk in e-business associations |
| title_full_unstemmed | Probabilistic assessment of financial risk in e-business associations |
| title_short | Probabilistic assessment of financial risk in e-business associations |
| title_sort | probabilistic assessment of financial risk in e-business associations |
| topic | Dependent events Financial risk Non-dependent events Performance risk Transactional risk E-business |
| url | http://hdl.handle.net/20.500.11937/21959 |