An integrative economic optimization model to is development risk management

Michel Benaroch, James Goldstein

Research output: Chapter in Book/Report/Conference proceedingConference contribution

1 Scopus citations

Abstract

This research develops an integrative model to managing IT investment risk from an economic optimization perspective by consolidating and building on the strengths of two research streams. The traditional stream is concerned with software development risk management and its focus on the "building" stage in the IT investment lifecycle enables addressing granular risks using well-established project management practices, but precludes managing risk from a comprehensive economic perspective. By contrast, the more recent stream uses real options theory (ROT) to study the economic implications of risk in relation to the flexibility one can build into IT investments to enable deployment of contingent risk countermeasures. However, this stream's macro level perspective is not geared towards granular risk management practices at the execution level. The economic optimization orientation of our model follows from the use of ROT as an economic basis for unifying micro- and macro-level risk management practices studied by both streams.

Original languageEnglish (US)
Title of host publicationAssociation for Information Systems - 12th Americas Conference On Information Systems, AMCIS 2006
Pages536-540
Number of pages5
StatePublished - Dec 1 2006
Event12th Americas Conference on Information Systems, AMCIS 2006 - Acapulco, Mexico
Duration: Aug 4 2006Aug 6 2006

Publication series

NameAssociation for Information Systems - 12th Americas Conference On Information Systems, AMCIS 2006
Volume1

Other

Other12th Americas Conference on Information Systems, AMCIS 2006
CountryMexico
CityAcapulco
Period8/4/068/6/06

Keywords

  • Information systems risk
  • Project management
  • Real options theory

ASJC Scopus subject areas

  • Computer Science Applications
  • Computer Networks and Communications
  • Library and Information Sciences
  • Information Systems

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  • Cite this

    Benaroch, M., & Goldstein, J. (2006). An integrative economic optimization model to is development risk management. In Association for Information Systems - 12th Americas Conference On Information Systems, AMCIS 2006 (pp. 536-540). (Association for Information Systems - 12th Americas Conference On Information Systems, AMCIS 2006; Vol. 1).