IT-Enabled Risk/Return Management : Service-Oriented Infrastructures vs. Dedicated Systems

Titelangaben

Buhl, Hans Ulrich ; Fridgen, Gilbert:
IT-Enabled Risk/Return Management : Service-Oriented Infrastructures vs. Dedicated Systems.
In: Tuunainen, Virpi (Hrsg.): Proceedings of the 19th European Conference on Information Systems (ECIS 2011) : Helsinki, Finland, June 9 - 11, 2011. - Helsinki , 2011
ISBN 978-952-60-3574-1

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Abstract

Risk/return management has not only evolved as one of the key success factors for enterprises especially in the financial services industry, but is in the times of the economic crisis initiated by the financial markets crucial for the survival of a company. It demands powerful and at the same time flexible computational resources making it an almost ideal application for service-oriented computing concepts. An essential characteristic of service-oriented infrastructures is that computational resources can be accessed on demand and paid per use. Taking the estimation of covariances for a portfolio of risky investment objects as an example, we propose quantification for the economic value of fast risk/return management calculations. Our model then compares the cost structures of service-oriented infrastructures and dedicated systems in this domain. On this basis, we can determine under which circumstances the one or the other architectural strategy is superior.