RISK MANAGEMENT IN ELECTRONIC COMMERCE

Abstract

             All of this information describes risk business management for e-commerce business traders. At present, e-commerce business has more popular because of high technology and consumer behavior. Moreover, traders have encouraged their businesses through online investing. E-commerce has reduced a business gap but increases business competition. It might be said that e-commerce has expanded the business market both domestic market and the international market. It can publicize the products to be known by target groups. Furthermore, e-commerce provides high potential for small businesses to compete with large companies. It also has the opportunity for both small and large entrepreneurs to develop their business or expand their customer base overseas.

          There are many factors of business success. The essential key to business success is risk management. E-commerce risk consists of risk on the strategic plan, operational risk, and financial risk’s on. New types of risk that may occur with e-commerce businesses such as online security risks, system reliability, privacy, or risks in law and rules that govern the tax burden and technology changes. All of these risks are disadvantages to the entire e-commerce business.

           The efficiency of risk management is an important key to reduce business risk. It has to bring a chance of competition or more profitability than business competitors.