Evaluating risks associated with Extended Enterprise Systems (EES)

Extended Enterprise System (EES) represents a network of interconnected enterprises functioning in harmony towards achieving a common objective. The efficiency of an EES lies in the ability of all its constituent enterprise systems working effectively in order to achieve a common objective. However, it is also essential to consider uncertainties that might lead to negative consequences and subsequent financial losses to the EES. Therefore, assessing the risks that might lead to the malfunctioning of an EES is one of the major challenges that a business enterprise might encounter. The paper is a variation of a previous research conducted by the authors on risk evaluation and proposes an extended enterprise-centric risk evaluation model through identification and prioritization of a set of critical risks that might affect the efficient functioning of an EES. The proposed model had a twofold contribution in the domain of EES. Firstly, policy-makers can use the findings of the research as a guideline to identify the critical risk involved with the functioning of an EES, which in turn can potentially escalate its vulnerability in the industry. Secondly, the identified risks along with their subsequent ranking to determine their relative criticality can be used by decision-makers to develop risk mitigation strategies for the EES.