Risk Sources Identification in Virtual Organisation

Enhanced sharing of knowledge, with dynamic access control and security accelerates and improves network decision making, shortens time to market and reduces network operating costs, whilst improved capture and especially re-use of enterprise and network knowledge reduces the cost of repeating work of earlier projects, and of repeating past errors. Improved, risk aware decision making reduces the costs of wrong decisions, and failed collaborations. Along with its numerous advantages, virtual organisations (VOs) – the virtual integration of supply chains - also pose several challenges, including risks which we have been studying through a review of literature where we found thirteen risk sources in the network related risks of the VO which are our main focus, such as lack of trust, top management commitment, information sharing, inadequate collaboration agreements, ontology differences, heterogeneity, structure and design, loss of communication, culture differences, geographic distribution, knowledge about risks, bidding for several virtual organisations at the same time and wrong partner selection. This paper is a comprehensive study identifying these threats to gain a better understanding by going through them one by one using literature and previous studies, then evaluating and ranking these sources based on qualitative study.

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