This paper examines the problem of risk mitigation in virtual organizations
(VOs). We begin by discussing risk propensity in virtual organizations, an
d draw on a variety of research to suggest processes important in obtaining
high levels of reliable performance in VOs. From this research we identify
four processes we think are important: organizational structuring and desi
gn, communication, culture, and trust. Based on existing research done in c
onventional and high reliability organizations (HROs), we suggest how these
processes may enhance reliability in VOs. We discuss how thoughtful manage
ment of these attributes can mitigate risk, and conclude with a theoretical
and research agenda for future work.