Organizational-DDM risk management model and algorithm for virtual enterprise

In view of the virtual enterprisespsila characteristics of organization and operation, the idea of distributed decision-making (DDM) is applied to the management of the virtual enterprisespsila risks, with an organizational-DDM risk management model developed for those virtual enterprises which are in relation to enforced-team, and describes how to reserve the best risk-controlling funds according to the forecasted risks in different operation stages from the beginning, and how to take best measures to control the risk and the investment of each stage especially the specific risk which is possible at a certain operation stages. To solve the model, a genetic algorithm is developed. The computing results on simulative examples show the effectiveness and feasibility of the model and algorithm for the risk management of virtual enterprises.