E-Learning Business Risk Management with Real Options

40 Pages Posted: 5 Dec 2010  

Georgios Angelou

affiliation not provided to SSRN

Anastasios A. Economides

University of Macedonia

Date Written: March 3, 2008

Abstract

E-learning markets have been expanding very rapidly. As a result, the involved senior managers are increasingly being confronted with the need to make significant investment decisions related to the e-learning business activities. Real options applications to risk management and investment evaluation of Information and Communication Technologies (ICT) have mainly focused on a single and a-priori known option. However, these options are not inherent in any ICT investment. Actually, they must be carefully planned and intentionally embedded in the ICT investment in order to mitigate its risks and increase its return. Moreover, when an ICT investment involves multiple risks, by adopting different series of cascading options we may achieve risk mitigation and enhance investment performance. In this paper, we apply real options to the e-learning investments evaluation. Given the investment’s requirements, assumptions and risks, the goal is to maximize the investment’s value by identifying a good way to structure it using carefully chosen real options.

Keywords: Decision Strategies, Electronic Learning (E-Learning), Distance Learning, Decision Models, Technology Infrastructures, Capital Investments, Decision Support, Information and Communications Technologies, Project Management, Real Options, Risk Management

Suggested Citation

Angelou, Georgios and Economides, Anastasios A., E-Learning Business Risk Management with Real Options (March 3, 2008). Angelou, G.N. and Economides, A.A (2008) E-learning Business Risk Management with Real Options. Book, Best Practices and Conceptual Innovations in Information Resources Management: Utilizing Technologies to Enable Global Progressions. http://64.225.158.80/proofs/Khosrow-PourIRM/11.pdf. Available at SSRN: https://ssrn.com/abstract=1719543 or http://dx.doi.org/10.2139/ssrn.1719543

Georgios Angelou

affiliation not provided to SSRN ( email )

Anastasios A. Economides (Contact Author)

University of Macedonia ( email )

Egnatia 156
Thessaloniki, 54006
Greece
00302310891799 (Phone)

HOME PAGE: http://conta.uom.gr

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