Location
Online
Event Website
https://hicss.hawaii.edu/
Start Date
3-1-2023 12:00 AM
End Date
7-1-2023 12:00 AM
Description
Fractional ownership makes homeownership more affordable. But there are challenges in a fractional ownership real estate transaction (FORET) regarding governance, risk management and compliance (GRC) processes. Centralized GRC solutions are less effective in managing the tiered structure of communications in a FORET, which can lead to principal-agent problems such as information asymmetry, risk aversion, and moral hazard. In this research we investigate how these principal-agent problems in FORET could be mitigated. Using an agency theory perspective, we adopt a design science multimethodological research approach. We propose conceptual and system artefacts to support the design and implementation of a decentralized autonomous agent system. These artefacts deliver a formal problem representation structure related to centralized GRC in fractional ownership. We illustrate our solution with a system prototype and implementation. We evaluate the research outputs and compare them with existing GRC systems. This paper contributes to the understanding of GRC in supporting fractional ownership decision making.
Recommended Citation
Cu, Mina; Peko, Gabrielle; Chan, Johnny; and Sundaram, David, "Blockchain-based Governance, Risk Management, and Compliance for Fractional Ownership: Design and Implementation of A Decentralized Autonomous Agent System" (2023). Hawaii International Conference on System Sciences 2023 (HICSS-56). 4.
https://aisel.aisnet.org/hicss-56/in/blockchain/4
Blockchain-based Governance, Risk Management, and Compliance for Fractional Ownership: Design and Implementation of A Decentralized Autonomous Agent System
Online
Fractional ownership makes homeownership more affordable. But there are challenges in a fractional ownership real estate transaction (FORET) regarding governance, risk management and compliance (GRC) processes. Centralized GRC solutions are less effective in managing the tiered structure of communications in a FORET, which can lead to principal-agent problems such as information asymmetry, risk aversion, and moral hazard. In this research we investigate how these principal-agent problems in FORET could be mitigated. Using an agency theory perspective, we adopt a design science multimethodological research approach. We propose conceptual and system artefacts to support the design and implementation of a decentralized autonomous agent system. These artefacts deliver a formal problem representation structure related to centralized GRC in fractional ownership. We illustrate our solution with a system prototype and implementation. We evaluate the research outputs and compare them with existing GRC systems. This paper contributes to the understanding of GRC in supporting fractional ownership decision making.
https://aisel.aisnet.org/hicss-56/in/blockchain/4