Communications of the IIMA


This conceptual paper seeks to advance a theoretical discussion on risk modeling and how it is used within the context of business process modeling. It discusses developments in risk modeling and then shows how they have been applied to the USA pharmaceutical industry. The pharmaceutical industry is a particularly interesting example in that it is bound on one side by stringent USA government mandates, and on the other by a risk adverse consumer population. A third aspect, the expanding cost structure of drug production and compliance, adds to the complexity of the problem. The discussion of risk in this paper applies mainly to regulated industries, and may be less applicable to more unregulated industry sectors. The important lesson for researchers is that a risk framework can play a significant part in business process modeling. The format for this paradigm may very well resemble a process repository, similar to those found in knowledge management systems.