Inderscience Publishers

An index to measure risk co-relationships in engineering enterprise systems

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This paper presents an index that measures the impacts of dependency risks between parts of an enterprise which can negatively affect the ability of the whole enterprise to deliver capabilities and services. This measure will be termed the risk co-relationship index. The purpose of this index is to enable engineers and managers to identify and evaluate the ripple effects of risks from one part of an enterprise to another. Presenting a way to model and measure these effects advances engineering management practice by allowing engineers and managers to consider dependency risks and use the index in decisions on resource allocation and enterprise design and implementation.

Keywords: dependency risks, enterprise systems, engineering systems, capability portfolio, risk management, supplier-provider, risk measurement, risk assessment, engineering management, resource allocation, enterprise design

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