Transaction Based Risk Analysis - Using Cognitive Fuzzy Techniques

This paper is devoted to the presentation of a risk-management methodology specifically developed for assessing and analysing risks incurred by the business transactions of an organisation. A transaction is a part of a business information system that has one or other functional goal. An order-entry-and-delivering-ofgoods transaction forming part of an MRP (materials, requirement & planning) information system is discussed as an example. The proposed methodology includes five successive stages in all, namely initiation, domain analysis, risk assessment, risk analysis and domain monitoring. This paper focuses on the risk analysis stage. The methodology enhances risk management in that it incorporates cognitive fuzzy-logic techniques − as opposed to quantitative techniques such as annual loss exposure (ALE) calculation − to assess and analyse the risks. In this way, it 2 E. SMITH1, J.H.P. ELOFF2 is ensured that full cognisance is taken of the intuitive nature of human observation when assessing and analysing the possible risks to be incurred in an organisation. In addition, the methodology takes into account the vagueness of the decision making process with respect to securing transaction information.