A risk assessment methodology for a Virtual Enterprise (VE) was developed to facilitate analysis of the key factors of risks and assessment of the level of risks a VE faces during its complete functioning period. The paper provides a relatively simple and straightforward method to estimate risks and intends to give a concept for mitigating the risks related to the action phase of a VE. A model of the existence of a VE with hierarchical risk factors was developed, which can be helpful to a decision- maker of a collaborative network of small and medium-sized enterprises in formulating risk management strategies and tactics in order to mitigate overall risks of the VE. The proposed semi-quantitative risk assessment method uses for the estimation and evaluation of risks matrices based on probability and impact. This research proposes Fault Tree Analysis (FTA) for determining the overall risk factor of a VE. Also, the Internet of Things (IoT)-based smart concept is suggested for risk mitigation.
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