Which of the following are e-business risk?

A) Transaction risks
B) Data storage and transmission risks
C) Risks of threat to intellectual property and privacy
D) Risk of retailing

Choose the correct answer from the options given below.

(A), (B) and (C) only

The correct answer is option 1- (A), (B) and (C) only.

Online transactions, unlike arm’s length transactions in physical exchange, are prone to a number of risks. Risk refers to the probability of any mishappening that can result into financial, reputational or psychological losses to the parties involved in a transaction. Because of greater probability of such risks in the case of online transactions, security and safety issues becomes the most crucial concern in e-business. One may broadly discuss these issues under three headings:

1) Transaction risks: Online transactions are vulnerable to the following types of transaction risks:

• Seller denies that the customer ever placed the order or the customer denies that he ever placed the order. This may be referred to as ‘default on order taking/giving.’
• The intended delivery does not take place, goods are delivered at wrong address, or goods other than ordered may be delivered. This may be regarded as ‘default on delivery’.
• Seller does not get the payment for the goods supplied whereas the customer claims that the payment was made. This may be referred to as ‘default on payment.

2) Data storage and transmission risks: Information is power indeed. But think for a moment if the power goes into the wrong hands. Data stored in the systems and en-route is exposed to a number of risks. Vital information may be stolen or modified to pursue some selfish motives or simply for fun/adventure.

3) Risks of threat to intellectual property and privacy: Internet is an open space. Once the information is available over the internet, it moves out of the private domain. It then becomes difficult to protect it from being copied. Data furnished in the course of online transactions may be supplied to others who may start dumping a host of advertising and promotional literature into your e-mail box. You are then at the receiving end, with little respite from receiving junk mails.