Title: Evaluating the benefits of service-oriented computing for risk/return management

Authors: Wolfgang Hackenbroch, Matthias Henneberger

Addresses: Department of Information Systems and Financial Engineering, Competence Center IT & Financial Services, University of Augsburg, Augsburg 86135, Germany. ' Department of Information Systems and Financial Engineering, Competence Center IT & Financial Services, University of Augsburg, Augsburg 86135, Germany

Abstract: Financial risk/return management requires high computational capabilities. It therefore seems to be a suitable application domain for service-oriented computing based on grid technologies. Due to on-demand access to a high amount of computational resources, calculations can be accelerated and resources can be used in a more flexible way than before. In this paper we describe the potential of service-oriented computing for risk/return management and propose a model to quantify the economic value of faster calculations.With our model it becomes possible to determine the computing capacity that should be allocated to corresponding services depending on current market parameters. We demonstrate this approach in a case study.

Keywords: service-oriented computing; grid computing; risk management; return management; economic modelling; benefits; services sciences; financial risk; financial return.

DOI: 10.1504/IJSSCI.2008.021765

International Journal of Services Sciences, 2008 Vol.1 No.3/4, pp.247 - 266

Published online: 03 Dec 2008 *

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