Electronic Buisness Essay Example | Topics and Well Written Essays - 2000 words

Electronic Buisness - Essay Example While e-business is concerned with the micro-environment of a firm, e-commerce deals with organization macro-environment (Bontis 2004). One aspect that comes with e-business is the need for effective risk management through proper identification, assessment and mitigation to satisfactory level. Nastase and Nastase (2007) define risk as a function of the possibility that some sources of threats will cause vulnerability leading to adverse effects on the organization. Unlike traditional boardroom risk management, today the business mainstream has become part of risk management to ensure that the organization achieves optimum profitability in a business environment characterized by elevating regulatory demands (Accenture 2011). This paper discuses risk management for e-business sustainability. Importance of sustainable risk management For all companies engaging in e-business, it is essential to align profit goals to the organizational policies on the environment through the process of su stainable risk management (Rouse 2010). ... In addition, risks in electronic business do not reduce but increase owing to changing management circumstances and operation modes (Jia and Zhou 2005).The core focus of sustainability in e-business risk management is through detection of emerging issues that would affect production, supply chain and operations (Napier, Rivers and Wagner 2006). The most crucial emerging issues in business nowadays are changing government regulations (Grefen 2010). Through the IT departments in organizations, data on emergent issues is managed based on its association with the sustainability goals of the organization (Kalakota and Robinson 2001) while ensuring the providence of automated auditing and reporting capabilities (Gasos and Thoben 2003). Brock and Azim-Khan (2008) argue that the realization of e-business risks administration determines the future state of the business. For most start-ups and established companies, investment in e-business is often wrong with less promising future (Yilmz and Flouris 2009). Failed e-business is a revelation that affected businesses failed to fully integrate into their strategy, both sustainability and risk management (Dylick and Hockerts 2002). Through proper integration of strategy and risk and sustainability management, businesses are sure of making money to remain afloat in a competitive environment (Holbrook 2010). The risks associated to business originate either internally or externally (Wilson 2003; Australian Government 2009) and this means that business executives are obliged to distinguish, weigh and limit risks (Hamel and Sampler 1998; Bontis 2004). According to Globe-net (2012), it is impossible to have stable financial systems