Effective risk management is incredibly vital to promoting smooth operations of firms in e-commerce industry, which have been found to engage in various developments and innovations to improve information security. SHENTON HOUSE In most cases, consumers are concerned about the security of their financial data when transacting online while companies fear the breach of privacy as it has serious legal implications (Nguyen et al., 2018; Pappas, 2016). By embedding the e-commerce activities and applicable risks to the above framework we can immediately make a translation to a practical approach for controls on your e-commerce activities, for example: Make them a part of your regular bank account management and banking landscape; Add a dedicated paragraph on e-commerce in the impacted Treasury . What Are The Possible Risks Of E-commerce Business? E-commerce means hiring a courier service to deliver products from your warehouse to the customer. Click here to continue to Loss Prevention Magazine. In most cases, encryption technology is used in the payment systems to protect the financial information of users. SINGAPORE (068805), 2002-2022 Allied Business Academies. Unfortunately, there is no magic bullet for solving this problem. Risk managers should ensure that employees have sufficient understanding of the companys risk mitigation policies to help in the management of various forms of internet-related threats. We will write a custom Case Study on E-Commerce Strategy and Action Plan specifically for you. In achieving these results, the platinum merchants have integrated more Internet fraud-fighting tools and more automation into their order process than the average e-commerce merchant. Webinars vs. Podcasts: How are They Different? The right approach in managing projects enables the team to implement them in the most efficient and effective way while reducing the risks. 4. While cheaper, there is not much value added by freelancers. Step #1: Write Down Ecommerce Website Scope of Work A scope statement is the first general outline of the project that gives rise to the rest of the working documentation. Low SEO Ranking What's The Solution? Our team adds vision, strategy, and hands-on efforts to position our clients for long-term success. This issue can cause many problems for your e-commerce website, especially when you are just starting. Assumptive risks are the assumptions you make when planning your venture; they include estimates of; Market demand Site traffic Conversion rate Average sales Order volume Costs of marketing Costs of Website maintenance You need to test and validate your assumptions if you are new in the E-commerce sector. The MRC Annual Fraud Survey, sponsored by CyberSource as part of its broader annual survey of Internet fraud, illustrates the challenges large merchants are facing. A holistic view. AGS 1056 includes discussion of how an entity's e-commerce strategy and business model identifies and addresses these business risks. An applicant may give the name of a company that does not exist. 3. Organizations must be increasingly prepared to manage a wide range of complex and emerging risks. The use cases for data and analytics to help predict and mitigate e-commerce risk are innumerable. One of the principal features of international business is the risk management process, which comprises several risk management plans combined. How to Manage and Mitigate E-Commerce Risks, Logistics Providers See E-Commerce Momentum Continuing Post-Pandemic, Wall Street Journal, When Youre a Small Business, E-Commerce Is Tougher Than It Looks, New York Times. 3 Competitive Pressures - The low barrier to entry presents both an opportunity and a threat to new e-commerce solutions. The speed of delivery is one aspect that can boost customer retention and loyalty. Address verification service (100 percent), In response to the fluidity of consumer preferences and the competitive landscape, e-commerce retailers have been well positioned to adopt agile practices and quickly recalibrate their business models to meet changing consumer expectations. Share. Extend your patience. E-commerce is a monolithic industry. What actions would you take if your primary supplier were blacklisted, and how would this affect your consumers? Risk: Unauthorized Access Not everybody needs to have access to all company files. Online Insecurity. Some conflict points include late delivery, wrong product delivery, failure to meet expectations, and accidental double charge. Assurance of confidentiality, integrity, and authenticity of information relating to online transactions is a major challenge facing the risk managers in e-commerce firms (Toleuuly et al., 2019). Customer Disputes. One misstep can seriously damage your reputation. if(responsiveVoice.isPlaying()){ Has the company recently dissolved, been on the verge of dissolving, or filed for bankruptcy? Every business needs to be risk savvy to avoid being caught on the wrong foot. Here are some of the ways to manage your e-commerce risks: 1. Check out this FREE essay on Risk Management of Legal Issues Affecting E-Commerce and use it to write your own unique paper. How to Create a Resource Management Plan. The first step in generating a resource management plan will be to review the project's other plans and documents. 808 certified writers . The web developer you hire should ensure that your website has standard security protocols in place, such as an SSL certification and Data Encryption. Check your inbox or spam folder to confirm your subscription. s a visual diagram of the risk analysis. On-line merchants do not have the ability to ask to see a drivers license or match a signature, so they need to have systems and tools to review information to authenticate the customer in real time. Organizations can plan ahead, minimize risk incidents, and maximize successful outcomes with effective risk management planning. Copyright 2022 Loss Prevention Media. To prevent Internet fraud, organizations should implement best practices built around three general principles: Invest. Wal-Mart ( WMT 1.25%) has been an aggressive player in the e-commerce market over the past 18 months. For this project, you will construct a risk management strategy for your selected company which includes specific cybersecurity activities (as defined in the NIST Cybersecurity Framework Core) which will help the company mitigate the identified risks. Get the latest news, best practices, technology updates, management tips, career opportunities and more. Sign up with a legitimate SEO Agency. It's an organization-wide approach to handling risks. Other challenges include misdelivery and late shipment. This is decided after a thorough cost/benefit analysis. The information gathered from various sources was subjected to quantitative measurement and descriptive statistical analysis to assess the overall role of risk management and features integrated into risk mitigation strategies to promote efficiency in e-commerce trade. There are cases when vendors do not give the products on time or even not deliver at all. You could also encounter system failures, such as a server crash and errors on the payment site. It has been established that the threat of cyber activities such as hacking increases as the online business expands. Risk managers see an evolving set of risks within the next three years. Rejected Orders. On August 26, 2019, the Ministry and the largest online retailer in Russia Wildberries signed an Agreement on mutual cooperation, which provides for the participation of Kazakh exporters in international trade using e-commerce channels in all areas of presence of Wildberries. Risk management helps in this regard and helps them prepare for unexpected events with fewer software risks and extra costs. - Phase 4: Website Designing. This unprecedented amount of data, coupled with the analytics capabilities to extract and synthesize it, empowers e-commerce solutions to continuously monitor their key leading and lagging risk indicators, which provide the critical signals to help prepare for and mitigate impending risks. The MRC educates businesses by disseminating information among members about the most effective Internet fraud-prevention practices and encourages connections between members within the industry. Sign up with a legitimate SEO Agency. For example, on-line jewelry retailers will often have specialized delivery services requiring signature verification and identification upon delivery. from hackers and fraud is crucial. In this scheme, a criminal typically steals the identity of a business executive at a publicly traded company where personal information, such as date of birth, address, and phone number, are easily accessible in public records. To provide the best experiences, we use technologies like cookies to store and/or access device information. Check your inbox or spam folder to confirm your subscription. Revenue Lost. The MRC works with federal and local law enforcement agencies, such as the Internet Crime Complaint Center (IC3), Federal Bureau of Investigation, Secret Service, U.S. Department of Justice, and U.S. The information system works only when both the sender and receiver have the same key. The project risk management plan at all times would contain the following attributes and elements: Process - This is the entire process that will be adopted to identify, analyze, evaluate, and mitigate risks throughout the project life . Internal threats for a company would be weak passwords . As soon as one block is erected, they are one step ahead, finding the next way to commit the crime. Buketov Karaganda State University. E-commerce risk management must also be tailored for each merchant to reflect business objectives and markets served. Plus, you'll be the first to know about our discounts! Lower switching costs have undermined brand loyalties and familiar consumer habits, making it even more difficult to project how, where and from whom online consumers will buy. Impact assessment of the Operational risks, liquidity risks and strategic risks at the company termed herein as Manageable risks, can be assessed as follows. Hackers can breach your companys network and thus gain unprecedented access to sensitive information such as company data and your customers credit card information. The strategy includes efforts to educate the public and trade community to ensure they understand their responsibilities as importers to comply with customs regulations. Contributed by Jordan MacAvoy is the Vice . Poor Customer Service What's The Solution? Besides, firms should ensure adequate staff training on various ways of detecting fraud and other risks associated with online transactions. 1. 2. Firms in the e-commerce business continue to introduce new features into their risk management techniques in order to respond adequately to emerging threats (Piotrowicz & Cuthbertson, 2014). Its primary function is the identification of your e-commerce brand's overarching goals and achieving those goals through the management of the brand . (image will be uploaded soon) Strategies of Risk Management and its Processes.
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