The e-business model has increased in popularity as technology has advanced with smaller and better forms of computer equipment. Therefore, many businesses started today conduct operations mainly via the Internet. Although e-businesses seem to be easy to start and require little upfront cash, they are still subject to the normal risks of any businesses. We will present you the most important two risks:
E-businesses face many different types of risks related to the security of their customer information or/and business information. For example, computer viruses and hackers are constantly trying to tap into online businesses and steal customer identities or some important financial information. These security risks “force” e-businesses to use professional software and encryption codes that limit an outsider’s ability to hack into their secure systems.
Business risk refers to the risk companies face from conducting business operations every day. These risks include overhead, inventory, labor or supply-chain problems. Due to the fact that many e-businesses do not have large physical locations or warehouses, they must rely on a supply chain for getting goods to consumers. Moreover, anytime a business must rely on individuals or other businesses to help distribute goods, risk may increase. Also, business risk occurs if the e-business is unable to buy inventory and move it through the supply chain quickly and efficiently.