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A Bayesian Network Model under Group Decision Making for Evaluating IT Outsourcing Risk

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3 Author(s)
Xiu-wu Liao ; Manage. Sch., Xian Jiao Tong Univ., Xian ; Tao Wan ; Yuan Li

The risk management of IT outsourcing (ITO) has a significant influence on the success of outsourcing. The accuracy of risk assessment directly impacts the effectiveness of risk management. For the characteristics of ITO, a Bayesian network method for evaluating ITO risk is proposed in this article. The Interpretive structural modeling is used to construct the network structure diagram and risk probabilities are calculated by Bayesian inference. In order to reduce the uncertainty and minimize the partiality of a single expert, linguistic variables are adopted to quantify the conditional probabilities of the network nodes and the fuzzy Delphi approach is used to integrate expertspsila opinions. At last, an example is given to illustrate the validity of this method proposed in this paper.

Published in:

Risk Management & Engineering Management, 2008. ICRMEM '08. International Conference on

Date of Conference:

4-6 Nov. 2008