Retrieved from https://inbusiness.kz/ru/news/e-torgovlya-kurs-na-udvoenie, . Enterprise risk management (ERM) is the methodical process of identifying and creating responses to potential events that represent risks to the achievement of your company's strategic objectives, or to opportunities to gain competitive advantage. The web developer you hire should ensure that your website has standard security protocols in place, such as an SSL certification and Data Encryption. The conference includes breakout sessions with credit card representatives, merchants, vendors, analysts, and consultants for beginners to advanced risk management and payment professionals in three tracks: Global issues, The MRC also educates law enforcement and the public about on-line crime and how to avoid it. Learn how. SINGAPORE (068805), 2002-2022 Allied Business Academies. Customer refunds can happen when either the item was never delivered, the customer was dissatisfied with the product, the product is damaged, or the product delivered does not match the customers order. For this project, you will build upon the e-Commerce Risk Analysis performed in Project #2. Financial Frauds. 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. The brand reputation is on the line, so you want to make sure that your business delivers. E-commerce entails the execution of business transactions through the internet, and it is a major trend in the contemporary world. E-commerce means hiring a courier service to deliver products from your warehouse to the customer. The information system works only when both the sender and receiver have the same key. Although there are numerous technologies for regulating the release of information, new techniques are being developed to enhance integrity, security, and confidentiality of information in modern conditions. Platinum merchants in the survey report an average of 0.6 percent of their total revenue is lost to on-line fraud, compared to 1.4 percent for the overall sample and 1.0 percent for other large non-member merchants with greater than $50 million in e-commerce sales. E-commerce has opened the world to a brand new shopping experience. Policymakers in the e-commerce sector must continue to explore new strategies for risk management as new threats emerge with technological evolution. 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). 6.2 Key factors for success in e-commerce Sources List of illustrations Illus. Hackers, thieves, and frauds can easily use a credit card that is not theirs to complete a transaction with your business. Before setting up shop, you should enforce additional layers of network security, including a secure firewall. As soon as one block is erected, they are one step ahead, finding the next way to commit the crime. 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. Get critical infromation for loss prevention professionals, security and retail management delivered right to your inbox. The practice utilizes many tools and techniques, including insurance, to manage a wide variety of risks. White House Warns Companies to Act Now on Ransomware Defenses, June 3, 2021, nytimes.com. Ronda Sifford, loss prevention manager at Costco.com and board member of the Merchant Risk Council (MRC), likens the cycle to building a 10-foot fence to keep criminals out, only to have them show up with an 11-foot ladder. In the modern conditions, protection of information is critical to achieving sustainable business in e-commerce sector. Sharing best practices, tips, approaches, and specific schemes is one of the most effective ways to combat the problem. Here, an organization checks for the more likely risks and their effect on the company and creates a rating. 5. Credit Card Fraud. Other risk management strategies may suggest the acceptance of the risk. Because of the general migration towards being digital, it has become a necessity for brands to establish an online presence. This process will act as a basis for your risk mitigation plan. Protecting your e-commerce platform from hackers and fraud is crucial. Unlike brick-and-mortar stores, running an e-commerce website does not require substantial overhead costs. } The technical storage or access that is used exclusively for statistical purposes. As e-commerce continues to grow exponentially, e-commerce risk management has never been more important. For new business accounts, the MRC recommends that merchants contact the company directly to verify the new account prior to extending any credit. 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. Some require your utmost dedication to mitigate them, while others are nonconsequential. Merchants in the survey indicate about half their Internet fraud comes in the form of chargebacks, with fifty percent of the platinum merchants reporting chargeback rates of 0.15 percent or less. Internet Fraud-Fighting Tools. Someone could use a stolen credit card to make an online purchase, or a hacker could use stolen credit data from other customers in your system. Factor Numeric Score 1. Track the Fraudulent. Studies have revealed that over the last 20 years, e-commerce has grown at a high rate, providing considerable advantages to both consumers and businesses through increased access to the market (Hagberg et al., 2016). When evaluating risks, you will realize that not all of them can be controlled. 5 Inevitable E-Commerce Risks You Should Watch Out For Online Insecurity. Conversely, low risks are unlikely to happen, and the effect is minimal if they do. Risk management is the most crucial feature of e-commerce business, which is the main focus for both customers and companies. Thus, the implementation of advanced technologies for risk mitigation has become a vital undertaking as hackers constantly develop new techniques for executing malicious attacks. We leverage our business, operational and technical experience and insight on behalf of our clients. The findings of the second study are presented in this . It is much harder when youre communicating with them only through an online messaging platform. There are servers out there that already sell ready-to-use websites. E-commerce businesses are in constant danger from hackers, credit card fraudsters, extortionists, phishing attackers, and other cyber criminals. Reshipping is one of the most popular Internet fraud schemes. Ministry of trade and integration of Kazakhstan will strengthen measures to protect the rights of online buyers. Check your inbox or spam folder to confirm your subscription. While e-commerce retailers are more vulnerable to algorithms and the whims of social media, they also have the flexibility to reinvent their brand and identity much faster than a retailer with a physical footprint. Companies in various industries have shifted to e-commerce in order to optimize market opportunities, increase efficiency, and minimize the operating cost (Zirakja & Samizadeh, 2011). Since there are many similar businesses to yours, you may unknowingly use a logo, motto, slogan, or product description related to another company. Privacy Policy. The combined results show MRC platinum merchants setting the pace for the e-commerce industry in controlling fraud and protecting valid customer orders. Certainly, such a strategy will help to sustain the operations of the industry in the future. E-commerce management is the practice of managing an online business, so it's successfully achieving its goals of quality product, customer acquisition and customer retention. However, huge information is involved in these transactions, which imply that information security must be considered to eliminate the adverse effects associated with online business. Tighten your online security measures so that it can quickly identify a sketchy or fraudulent transaction. Copyright 2022 Loss Prevention Media. Allied Business Academies publishing a total of 14 different journals in various fields of business. Successful operations of companies that execute their business through the online platforms must involve development of effective strategies that will improve their capacity to respond to impending threats. Every week, we'll be sending you curated materials handpicked to help you with Digital Marketing. Then, you can either reduce your price, market your product as superior, or give your buyers incentives. https://www.facebook.com/UnderstandingeCommerce/, https://www.linkedin.com/in/digital-media-marketing/, https://www.instagram.com/digital.media.marketing/, https://www.youtube.com/channel/UCI2Rj4ZZHB7CuV-a0bo67Ug, PPC Ad Campaigns that Increase Conversions, Business Coaching for Growth and Profitability, Business Development Services for Selling in the US, Business Planning Launching and Growing Your Business, Developing an Action Plan Coaching for Entrepreneurs, Due Diligence and Business Case Development, International Business Development and Management, International Strategies & Business Development, Small Business Website Design Packages Web Development, Communication Strategies for Better Lead Generation and More, Digital Marketing Consultants San Francisco, Growth Marketing Strategies for Brand Awareness and Customer Acquisition, Startup Life in San Francisco Startup Ecosystem, Free Project Management Certification Practice Test, PMI-ACP Exam Prep Workshop and Online Learning, Agile and Scrum Fundamentals Workshops and Online Learning, Time Management with Judy Dang of Avid at Work. While cheaper, there is not much value added by freelancers. Rejected Orders. The growth in e-commerce has opened a new set of challenges in risk management. All in all, these risks come with extraordinary upside and the potential to create lasting value in the market. The strategy includes efforts to educate the public and trade community to ensure they understand their responsibilities as importers to comply with customs regulations. 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. Some uncontrollable risks are driven by; Instead of waiting for such scenarios to play out, you must prepare a contingency plan to minimize the damage. We BUILD online solutions that GROW businesses that CONVERTvisitors into customers. Therefore, always perform a legal intellectual property audit and safeguard yours by registering it. It's imperative that e-commerce security threats be taken seriously by all companies operating in this sphere. Just imagine how much of a problem it can be with off-site clients that you can only talk with digitally. You can mitigate this with an ironclad contract. PETs (privacy-enhancing technologies) are being strengthened to improve the capacity of e-commerce firms to safeguard their databases against emerging crimes. ; PPM Explore modern project and portfolio management. Enterprise See how you can align global teams, build and scale business-driven solutions, and enable IT to manage risk and maintain compliance on the platform for dynamic work. The business plan must also include the operations side of things. Law enforcement membership allows access to protected sections of the MRC web site and access to timely information for Internet fraud prevention, including analyses of fraud prevention tools, information on the most up-to-date technological solutions for decreasing fraud, and reviews of fraud prevention software. 3 Competitive Pressures - The low barrier to entry presents both an opportunity and a threat to new e-commerce solutions. 1 1 1 3. managing this risk is not just important to your business, it is crucial to the health of your organization. These 14 Factors Will Help You Take Control of Your Property Risk, Risk managers find themselves in a difficult position, caught between pressures to reduce costs while mitigating risks and enhancing operational resiliency in a continued hard market. The technical storage or access that is used exclusively for statistical purposes. Some conflict points include late delivery, wrong product delivery, failure to meet expectations, and accidental double charge. Have there been significant changes in ownership of the company recently? A project management methodology is the first step to the success of your e-commerce project plan. E-commerce has become a major trend of the contemporary economy where businesses have significantly shifted their transactions to online platforms in order to take advantage of the global market. [3] As online retailers grow their business, they become bigger targets for cybercriminals and need to protect themselves and their consumers by investing in the appropriate cyber security measures, such as employing multifactor authentication, keeping systems patched and up to date, installing detection and response tools, prearranging a third-party incident response team, and creating a secure digital culture.[4]. How to Create a Resource Management Plan. In this dynamic risk environment, e-commerce players must protect their reputation with a proactive customer service strategy and shape their digital identity to appeal to a new and more critical generation of online consumers. Risk management involves identifying, analyzing, and taking steps to reduce or eliminate the exposures to loss faced by an organization or individual. The Merchant Risk Council began as an informal group of merchants meeting to discuss the overwhelming increase of Internet fraud. The brand reputation is on the line, so you want to make sure that your business delivers. Running a Risk Assessment of Your eCommerce Business. There are cases when vendors do not give the products on time or even not deliver at all. An applicant may give the name of a company that does not exist. All Rights Reserved. Cooperation and information are the keys to a long-term solution. Editors Note: Many of the subjectsdiscussed in this article are as valid today as they were when the content was originally presented, while other topics show additional insight into the e-commerce concerns and Internet fraud issues that we are currently dealing with today. Color codes are utilized in a risk matrix to increase visibility, help businesses track threats, and improve decision-making. is necessary to guarantee that you do not encounter any issues in the future. Search Engine Optimization can help improve your brand recognition, online visibility, and of course, your sales. This issue can cause many problems for your e-commerce website, especially when you are just starting. An applicant may use a legitimate company name, but provide a false address and phone number on the application. Sometimes it's innocent, sometimes not so much. You should use an inventory management tool and work with an established drop shipping service to avoid such risks. Any information collected is not sold to, shared with, or distributed to any third parties. Here are some of the more pressing strategic and operational risks that online retailers face today, and the actions that risk managers can use to take control of their risk, including making use of relevant data and analytics. . The government of the Republic of Kazakhstan pays great attention to the development of digitalization in the country. Risk assessment is part of the risk management process. However, getting it to rank on top of Search Engine Results Pages and increasing its online visibility is an exhausting task that is best left for the professionals. The speed of delivery is one aspect that can boost customer retention and loyalty. Violation Of Intellectual Property What's The Solution? Publication Ethics & Malpractice Statement, . It should be a part of the culture of the organisation, with a programme and an effective policy led by top management with transparent responsibilities laid down for every manager and employee to be involved in the management of risk. However, like any other business, establishing an E-commerce business comes with risks. Most of them rely on age-old SEO tactics thats been out phased by Google, i.e., cloaking and keyword stuffing. Retrieved from http://adilet.zan.kz/rus/docs/P1700000827, . Check out this FREE essay on Risk Management of Legal Issues Affecting E-Commerce and use it to write your own unique paper. Our team adds vision, strategy, and hands-on efforts to position our clients for long-term success. So the best practices are to focus on the monitoring phase of the risk management plan. The most notable difference is in order velocity monitoring. It goes without saying that you should only sign up with a legitimate courier service. Therefore, always perform a legal intellectual property audit and safeguard yours by registering it. Interacting with infuriated customers personally is an exhausting task. Buketov Karaganda State University, Sholpan Jumabaeva, Academician Y.A. 4. Protecting your e-commerce platform from hackers and fraud is crucial. For this reason, it is essential to develop strong risk management strategies to achieve sustainable e-commerce industry. Sentiment analysis and natural language processing tools can also be used to analyze online reviews and customer service calls, generating insights on customer trends that can inform a more agile customer service strategy. It shows the threat as a graph, ranking the risks by probability and significance. This knowledge will help you make informed predictions and avoid increasing risk exposure. - Phase 6: Migration and Launching. Retrieved from https://stat.gov.kz/official/industry/17/statistic/5, . The main categories of risks are assumptive risks and operational risks. To guarantee your businesss long-term survival, use a risk assessment matrix to quickly identify what could go wrong and estimate the potential damage that could arise from the event. The following privacy statement informs you about how the personal information you enter on our website is being processed. E-commerce, Risk Management, Information Security, Business. You need to adopt those for the best results to derive out of your business, besides helping it stay away from any sorts of malicious attacks, and virus attacks. This way, your eCommerce business will be in a position to prioritize the most significant threats and mitigate them early. However, like any other business, establishing an. We will write a custom Case Study on E-Commerce Strategy and Action Plan specifically for you. 5: Shopware 4 Frontend Demo Shop Illus. Creative Commons Attribution 4.0 International License. E-commerce businesses are in constant danger from hackers, credit card fraudsters, extortionists, phishing attackers, and other cyber criminals. Determine who will be your manufacturer, secondary manufacturer, and shipping and fulfillment provider. - Phase 2: Preparation of Website Outline. The web developer you hire should ensure that your website has standard security protocols in place, such as an SSL certification and Data Encryption. Every phase has its own requirements with modest goals. To prevent Internet fraud, organizations should implement best practices built around three general principles: Invest. 1: Summary e-business Illus. Our entrepreneurs will be able to actively cooperate with world players, which will subsequently help to rapidly develop e-commerce in Kazakhstan. You can mitigate this with an ironclad contract. However, before jumping on the bandwagon and opening up your e-commerce website, it is best to understand the risk that comes with this venture. Risk management is the most crucial feature of e-commerce business, which is the main focus for both customers and companies. Some uncontrollable risks are driven by; Market forces Economic conditions Competitor strategies Industry regulations Instead of waiting for such scenarios to play out, you must prepare a contingency plan to minimize the damage. MRC members, even those who are competitors, share information with one another for the benefit of curbing Internet fraud. Fifty percent of platinum merchants report a fraudulent order rate of 0.25 percent or less. Customer satisfaction is essential to the survival of your e-commerce website. When evaluating risks, you will realize that not all of them can be controlled.
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