Value modelling is a quick way to understand the business context, core activities, roles and capabilities involved in the firm’s business model. Modelling the flow of value within a business entity gives its value model.

We apply value modeling towards an integrated perspective to compliance design. We propose a methodology that begins with value models to determine the applicable legal provisions using legal interpretation and argumentation. The resulting prescriptions are then customized to fit the value model. Once the business context is modeled, using value modeling, abstract argumentation schemes are used to ensure (1) the relevant legal rules are identified (2) any ambiguities are resolved, and (3) the resulting outcome is applied.

In this approach legal risk is modeled as value-at-risk in order to express its impact on the business model. The compliance patterns are designed to clarify the necessary conditions for compliance in a way that is accessible to system engineers, business executives, business analysts and other stakeholders. This aims to help them make informed decisions about the way to deal with legal risks.

Main contributor(s): Robert Muthuri