Reframing the EU budget- decision-making process

This paper traces the history of the EU budget and draws lessons for the review to come. Whatever reforms are proposed, the authors believe that they must serve to shift spending to policy areas and instruments where the EU can best add value while at the same time recognising the political need for member states to present EU budget negotiation results in Â?net-balanceâ?? terms. A two-stage negotiation is proposed: first member states should negotiate and agree on what constitute EU public goods. Everything else would thereafter - by default - be deemed redistributive/compensatory spending to be financed on the basis of member statesâ?? current overall net balances.

Structuring the decision process

This chapter includes a discussion of leadership decisions and stress. Many leaders are daily exposed to stress when they must make decisions, and there are often social reasons for this. Social standards suggest that a leader must be proactive and make decisions and not flee the situation. Conflict often creates stress in decision-making situations. It is important for leaders to understand that it is not stress in itself that leads to bad decisions, rather, bad decisions may be the result of time pressure in the sense that leaders have not been able to gather enough relevant information. Thus, it is worthwhile for leaders to be able to prioritize properly in order to cope with stressful situations. In some situations, a leader chooses to delegate the decisions to his/her team and then it is important to guard against «groupthink», a phenomenon where members of a team put consensus before anything else as a result of the peer pressure. A number of methods are presented that enable leaders to avoid this phenomenon. Often leaders are involved in decision-making situations where they are forced to navigate between objectives that are in strong conflict with each other. We are talking about «decision dilemmas». These are characterized by the existence of a conflict between the top leadership's desire to control the activities and their wish to give autonomy and independence to the various units. It is important for leaders to be able to strike a balance in different dilemma situations and understand how to best manage conflicts when they aris

Structuring the decision process : an evaluation of methods in the structuring the decision process

This chapter examines the effectiveness of methods that are designed to provide structure and support to decision making. Those that are primarily aimed at individual decision makers are examined first and then attention is turned to groups. In each case weaknesses of unaided decision making are identified and how successful the application of formal methods is likely to be in mitigating these weaknesses is assessed

Implementing a Decision-Aware System for Loan Contracting Decision Process

The paper introduces our work related to the design and implementation of a decision-aware system focused on the loan contracting decision process. A decision-aware system is a software that enables the user to make a decision in a simulated environment and logs all the actions of the decision maker while interacting with the software. By using a mining algorithm on the logs, it creates a model of the decision process and presents it to the user. The main design issue introduced in the paper is the possibility to log the mental actions of the user. The main implementation issues are: user activity logging programming and technologies used. The first section of the paper introduces the state-of-the-art research in process mining and the framework of our research; the second section argues the design of the system; the third section introduces the actual implementation and the fourth section shows a running example.Decision-Aware Systems, Decision Activity Logs, Decision Mining, Codeigniter, JSON

Enhancing declarative process models with DMN decision logic

Modeling dynamic, human-centric, non-standardized and knowledge-intensive business processes with imperative process modeling approaches is very challenging. Declarative process modeling approaches are more appropriate for these processes, as they offer the run-time flexibility typically required in these cases. However, by means of a realistic healthcare process that falls in the aforementioned category, we demonstrate in this paper that current declarative approaches do not incorporate all the details needed. More specifically, they lack a way to model decision logic, which is important when attempting to fully capture these processes. We propose a new declarative language, Declare-R-DMN, which combines the declarative process modeling language Declare-R with the newly adopted OMG standard Decision Model and Notation. Aside from supporting the functionality of both languages, Declare-R-DMN also creates bridges between them. We will show that using this language results in process models that encapsulate much more knowledge, while still offering the same flexibility

The effects of decision flexibility in the hierarchical investment decision process

Large institutional investors allocate their funds over a number of classes (e.g. equity, fixed income and real estate), various geographical regions and different industries. In practice, these allocation decisions are usually made in a hierarchical (top-down), consecutive way. At the higher decision level, the allocation is made on basis of benchmark portfolios (indexes). Such indexes are then set as targets for the lower levels. For example, at the top level the allocation decision is made on the basis of asset class benchmark indexes, on the second level the decisions are made on the basis of sector benchmark indexes, etc. Obviously, the lower levels have considerable flexibility to deviate from these targets. That is the reason why targets often come with limits on the maximally allowed deviation (or "tracking error") from these targets. The potential consequences of deviations from the benchmark portfolios have received very little attention in the literature. In this paper, we discuss and illustrate this influence. The lower level tracking errors with respect to the benchmark indexes propagate to the top level. As a result the risk-return characteristics of the actual aggregate portfolio will be different from those of the initial benchmark-based portfolio. We illustrate this effect for a two level process to allocate funds over individual US stocks and sectors. We show that the benchmark allocation approaches used in practice yield inferior solutions when compared to a non-hierarchical approach where full information about individual lower level investment opportunities is available. Our results reveal that even small deviations from the benchmark portfolios can cause large shifts in the top-level risk-return space. This implies that the incorporation of lower level information in the initial top-level decision process will lead to a different (possibly better) allocation.decision flexibility;multi-level decision process;porfolio management;tracking error analysis