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A Methodology for Improving the Investment Portfolio Management Process for the Homeland Security Department using Quality Function Deployment
Author(s) -
FALLAH HOSEIN M.,
MURPHY FREDERIC H.,
STOHR EDWARD A.
Publication year - 2010
Publication title -
public budgeting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.694
H-Index - 30
eISSN - 1540-5850
pISSN - 0275-1100
DOI - 10.1111/j.1540-5850.2010.00966.x
Subject(s) - homeland security , software deployment , computer science , portfolio , function (biology) , investment (military) , process (computing) , computer security , process management , risk analysis (engineering) , operations research , management science , business , finance , economics , engineering , evolutionary biology , biology , politics , political science , terrorism , law , operating system , archaeology , history
In this paper, we describe a methodology for improving homeland security investment decisions. The objective is to evaluate multitechnology, multiyear investment choices and the associated development and deployment risks associated with new technologies. The budgeting process in the Homeland Security Department is a complex multicriteria decision problem involving a distributed network of decision makers with diverse areas of expertise. The decision problem in Homeland Security involves game‐theoretic aspects as the terrorists are likely to alter their strategies depending on the defensive counter measures selected in the budget. We propose a two‐phased systems approach. The first phase employs a visualization tool based on Quality Function Deployment to develop an initial budget allocation. The second phase involves an iterative approach to project selection that dynamically adjusts the investment portfolio based on anticipated reactions taken by the terrorists. This paper is based on a study done as part of a research project for the Department of Homeland Security (DHS). We present a high‐level view of the methodology and illustrate it with examples.