Reducing Risk Through Real Options in Systems Design: The Case of Architecting a Maritime Domain Protection System

@article{Buurman2009ReducingRT,
  title={Reducing Risk Through Real Options in Systems Design: The Case of Architecting a Maritime Domain Protection System},
  author={Joost Buurman and Stephen X. Zhang and Vladan Babovic},
  journal={Risk Analysis},
  year={2009},
  volume={29}
}
Complex engineering systems are usually designed to last for many years. Such systems will face many uncertainties in the future. Hence the design and deployment of these systems should not be based on a single scenario, but should incorporate flexibility. Flexibility can be incorporated in system architectures in the form of options that can be exercised in the future when new information is available. Incorporating flexibility comes, however, at a cost. To evaluate if this cost is worth the… 

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