Risk Management of Legal Issues affecting E-Commerce
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 the failure of a business. Non-compliance with the laws may lead to many legal consequences including the government forcing the organization to close or hefty fines, which may lead to many losses leading to the failure of the business. Therefore, the management needs to be aware of the legal concerns of the business to ensure compliance of the law is a daily routine of the organization. One example of the laws on e-commerce that affect the company is copyright laws. The copyright laws pose many threats to the survival of the business. Therefore, the management need to identify these risks, asses them, and develop ways of mitigating them to avoid them affecting the organization largely (Spindler, 2007). The process of risk management involves many other processes. The first process of risk management is to identify the risks. In the case of e-commerce and the copyright issues, the management has to find the risks that copyright issues present to the business. The identification of the risks that copyright issues pose must be at all the stages of the project. When a new product is available, the organization must look at the copyright issues in the first place. When there is a small problem regarding the copyright issues of any product or the website itself, the management must identify the small problem before it becomes a major problem threatening the product. Therefore, any organization must have large personnel for risk identification including a large and informed legal counsel to provide the necessary counsel on copyright issues (Bouridis, 2010). The second step to risk management is analysis of the risk. Analysis of the risk is paramount in making sure that an organization deals with the risk to avoid complications. The analysis involves prioritization, communication with the relevant teams to reduce the threat. In the case of copyright issues, once the team responsible has identified a problem on copyright of a new product, the team must go forward to...
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