A partner selection method based on risk evaluation in virtual enterprises

Risk evaluation is an important issue in virtual enterprises. It is not only one of the key processes in risk management, but also an important consideration in some other decision activities in virtual enterprises. In this paper, we first discuss a possible risk breakdown structure (RBS) for virtual enterprises and suggest a risk evaluation method. Then we apply the proposed risk evaluation method to the partner selection problem. The result shows that the proposed evaluation method can help to improve the partner selection result in the case that more information is available. We should select corresponding combination of the partners according to their specific risk condition.