The risk management of virtual enterprise based on bilateral negotiation

In order to control the risk of virtual enterprise to a reasonable range and reduce the total risk control cost as much as possible, we put forward a risk management method of virtual enterprise based on bilateral negotiation. By using this method, the leader and the member need to negotiate to transfer the risk control task. It will make the member who takes the risk control task acquire satisfactory risk control returns while reducing the leader´s risk control cost and achieve a win-win result. We built a model to generate a counteroffer which make the negotiation result to be Pareto optimal. In the end we simulate the process of negotiation under different negotiation strategy and analysis the result of the negotiation.