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Integrating value modeling and legal risk management: an IT case study

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Abstract

Companies need to be able to demonstrate compliance with rules and regulations, especially start-ups who typically do not have the legal expertise to identify, assess and address legal risks of initial business ideas, nor do they have the resources to hire such expertise. Tools could help them identify and deal with legal risk at an early stage. Existing research in BPM focuses on compliance verification of a consolidated business model by checking the ability of a company to comply with the standards. The challenge is to apply a ‘continuous improvement’ by steering the business on values. Moreover, legal choices typically sit at the strategic level, and not only at the operational level. In this paper, we therefore propose an approach to handle legal risks as part of business model development. The approach makes use of Continuous Business Model Planning method, a value-driven modeling approach for strategic planning, and legal argumentation. The suitability and potential usefulness of the approach is illustrated by a study of the Kenyan court case Lipisha & BitPesa vs. Safaricom.

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Notes

  1. See (Muthuri 2017), also at http://amsdottorato.unibo.it/8268/.

  2. Note that, the interpretations are extracted from the conclusion of the legal argumentation to develop a final prescription. The case above did not proceed to full hearing and we can therefore only speculate the final interpretation of the court. If CBK declines to accept the interpretation in this solution, the legal risk will persist. We will proceed to adopt this solution as the best alternative because it is the most plausible and compatible with: 1) Encourage innovation, attract investment and promote ease of doing business for a positive socio-economic impact through ICT; 2) Promote technology convergence with ought to include blockchain-enabled convergence of artificial intelligence (AI), Internet of Things, autonomous robotics, and virtual reality. 3) Support emerging ecosystems which ought to include, shared ledger systems and thereby to issue the relevant guidance and adaptive regulation to the financial sector.

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Authors and Affiliations

  1. Anjarwalla & Khanna LLP - ALN House, Nairobi, Kenya

    Robert Muthuri

  2. Computer Science Department, University of Turin, Torino, Italy

    Sara Capecchi, Emilio Sulis, Ilaria Angela Amantea & Guido Boella

Authors
  1. Robert Muthuri
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  2. Sara Capecchi
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  3. Emilio Sulis
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  4. Ilaria Angela Amantea
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  5. Guido Boella
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Correspondence to Emilio Sulis.

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Appendix: survey questionnaire

Appendix: survey questionnaire

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Muthuri, R., Capecchi, S., Sulis, E. et al. Integrating value modeling and legal risk management: an IT case study. Inf Syst E-Bus Manage 20, 27–55 (2022). https://doi.org/10.1007/s10257-021-00543-2

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