Risk Management

Better Risk Management

Everything people need seemed to be offered in the Internet information , entertainment , communication , business and so much more This is the reason why more and more entrepreneurs establish their online programs to cater to a larger and broader audience . It showed that ventures became more productive and easier to manage through a web site in the Internet . And for this reason , resorting to the Internet became very popular especially with large businesses

Given these possibilities and advantages , there are still setbacks that must be considered in this type

of undertaking . There have been studies conducted on the possible drawbacks of Internet-based sales programs which showed that risks can either be controlled or guarded against According to Holmes , risk management is not very simple . Poor risk management can have impacts on stakeholders . Since the company decided to invest in the Internet , the risk manager should bear in mind that the economy can go bad . Investing also means that inflation may damage value create downturns for the company . Little (2007 ) says that the best remedy for inflation is stocks because the company can easily adjust the prices

Other risks include IT ones . There are called supervisory risks and technology risks in creating and developing a web site for a business Technology risks include financial , operational and compliance risks Sometimes people make mistakes in investing in ventures or product services that failed . There is also the issue of security , availability and integrity in operating (Richards . Even the most secure systems today have been victimized by intrusion . This was done through viruses and worms which could hamper the many transactions of the company Proper security for the online sales program can prevent hackers from illegally downloading and intruding into the system . Investing in proper security also means pulling out money to solve this issue . However , the company must remember that when it comes to Internet security , there is no assurance that the website will be foolproof

Aside from these , there are also other risks to consider . One is payment fraud . According to VeriSign , payment fraud online has many forms . The company 's site or network will be compromised to steal products , steal cash , steal identities , and verify stolen identities Moreover , `fraudsters ' can easily buy credit card numbers and then use them on the website in just a few minutes . Another way is they can steal your account and credit a large amount of money to their own account This problem can be mitigated by online payments security and fraud prevention

The company must also consider the fact that not all of their customers have access to or no availability of computers or to the system . If this cannot be resolved , then it is still better to have sales agents go to these customers . The company should assure their clients of the integrity of the information on their website

These risks can be controlled or minimized . What every company must know is how this can be done . Table 1 shows the risk...