TY - GEN
T1 - Using Real Option Thinking to Improve Decision Making in Security Investment
AU - Nunes Leal Franqueira, V.
AU - Houmb, S.H.
AU - Daneva, Maia
PY - 2010/10
Y1 - 2010/10
N2 - Making well-founded security investment decisions is hard:
several alternatives may need to be considered, the
alternatives' space is often diffuse, and many decision parameters that are traded-off are uncertain or
incomplete. We cope with these challenges by proposing a method that supports decision makers in the process of making well-founded and balanced security investment decisions. The method has two fundamental ingredients, staging and learning, that fit into a continuous decision cycle. The method takes advantage of Real Options thinking, not only to select a decision option, but also to compound it with other options in following decision iterations, after reflection on the decision alternatives previously implemented. Additionally, our method is supported by the
SecInvest tool for trade-off analysis that considers decision parameters, including cost, risks, context (such as time-to-market and B2B trust), and expected benefits
when evaluating the various decision alternatives. The output of the tool, a fitness score for each decision alternative, allows to compare the evaluations of the decision makers involved as well as to include learning and consequent adjustments of decision parameters.
We demonstrate the method using a three decision alternatives example.
AB - Making well-founded security investment decisions is hard:
several alternatives may need to be considered, the
alternatives' space is often diffuse, and many decision parameters that are traded-off are uncertain or
incomplete. We cope with these challenges by proposing a method that supports decision makers in the process of making well-founded and balanced security investment decisions. The method has two fundamental ingredients, staging and learning, that fit into a continuous decision cycle. The method takes advantage of Real Options thinking, not only to select a decision option, but also to compound it with other options in following decision iterations, after reflection on the decision alternatives previously implemented. Additionally, our method is supported by the
SecInvest tool for trade-off analysis that considers decision parameters, including cost, risks, context (such as time-to-market and B2B trust), and expected benefits
when evaluating the various decision alternatives. The output of the tool, a fitness score for each decision alternative, allows to compare the evaluations of the decision makers involved as well as to include learning and consequent adjustments of decision parameters.
We demonstrate the method using a three decision alternatives example.
KW - METIS-270967
KW - IR-72521
KW - Extended Enterprise
KW - Bayesian Belief Network (BBN)
KW - Real Option Analysis
KW - Security Decision Support
KW - Security Economics
KW - Outsourcing
KW - EWI-18272
KW - SCS-Services
U2 - 10.1007/978-3-642-16934-2_46
DO - 10.1007/978-3-642-16934-2_46
M3 - Conference contribution
T3 - Lecture Notes in Computer Science
SP - 619
EP - 638
BT - To Appear in the Proceedings of the 5th International Symposium on Information Security (IS'2010 - On The Move Federated Conferences)
PB - Springer
CY - London
Y2 - 25 October 2010 through 29 October 2010
ER -