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Risk Management of Legal Issues Affecting E-Commerce

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Risk Management of Legal Issues Affecting E-Commerce

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  • May 21, 2013
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Risk Management of Legal Issues affecting E-Commerce
Introduction
Risk management is the ability to identify, assess, and prioritize risks depending on the threat they poses on a business and the resources available. Most organizations are operating their business online nowadays. Many industries such as banking, insurance, selling of goods, offering of certain services are turning their operations online. E-commerce has many challenges that threaten to make any organization conducting online business to fail. The ability to identify, asses, and come up with solutions to the risks in the e-commerce industry is essential in ensuring success of the organization. One of the major challenges of e-commerce is the legal implications among others. Due to the nature of online business that it is worldwide and that many people can access it, legal matters are a crucial issue in the commerce. E-commerce business is growing rapidly leaving the legal systems in a struggle to adapt to the growing industry. Likewise, e-commerce organizations need to come up with new procedures and rules for the business. The growth poses many issues on regulation and many legal questions. How do authorities regulate digital content? Can national laws of a country apply in the web business? Can there be protection of privacy and protection of data in the internet? (Shah, & Nagree, 2001) For any of the organizations in the online business, managers need to be aware of the legal issues. Given that for any business, the government tries to impose regulations, managers need to be aware of these regulations to be able to succeed in the business. The e-commerce rapid growth makes the laws to change from time to time to include the changes in the business. Therefore, managers need to be familiar with the changing laws and have a deep knowledge of the law to be able to make the best decisions for the organization in terms of legal issues. Improper decisions when it comes to legal matters can lead to...