Answer to Question #312604 in Management for Thome

Question

BAF2206: PRINCIPLES OF RISK MANAGEMENT AND INSURANCE CAT

Discuss how enterprise risk management has revolutionized e-commerce today        (30 Marks)

Answer 1

The purpose of e-commerce risk management is to safeguard the growth of the industry. It entails the establishment of information security goals, the assessment of vulnerabilities, threats, and attacks, and the selection of countermeasures. An ERM program can help an organization raise awareness of business risks throughout the organization, instill confidence in strategic objectives, improve compliance with regulatory and internal compliance mandates, and improve operational efficiency through more consistent application of processes and controls. Enterprises may benefit from moving their corporate culture away from achieving IT compliance requirements and toward risk reduction, which is strongly reliant on insight into the organization's total security. Certain kinds of firms are risk-averse by nature, while others foster risk-taking cultures in order to pursue strategic projects.

Additionally, enterprise-level internal governance frameworks and collaborative team structures will vary significantly, impacting how decisions are made and controls are applied. The retail sector is in the midst of a transformation. Internet sales are expanding as an increasing number of tech-savvy people purchase online. In August 1994, the first safe Internet commerce transaction occurred - the sale of a CD in the United States. E-commerce also saves time, since the selection and payment processes are fairly brief with online shopping. Because there is no obligation to visit offline shops, you can also save on travel time. Reduced Prices: Numerous intermediaries were engaged in offline retailers, which meant that customers had to pay a premium.