This document discusses the risks and threats associated with implementing e-business. It begins by defining e-business as conducting business processes online through activities like online shopping, banking, advertising, and more. It then outlines several common risks, including security risks from data breaches and malware, operational risks from systems failures and supply chain disruptions, reputational risks from negative customer reviews and social media backlash, legal and regulatory risks from non-compliance with privacy and security laws, financial risks from investment costs and payment processing fees, and competitive risks from new entrants and changing consumer behaviors. Examples are provided for each risk category. The document concludes by suggesting mitigation strategies like cybersecurity measures, business continuity planning, legal compliance, reputation management

1. Introduction To Information Technology
(Risk/Threats in E-Business Implementation)
Presented To:
Ma’am Sumaira Aman
Presented By:
13104 M. Ahmad
13117 M. Maymoon Ali

2. What Is E-business:
• E-Business, also known as Electronic Business,
refers to the conduct of business processes online,
encompassing a wide range of activities.
• It utilizes the internet, web, to facilitate buying and
selling goods and services, advertising, customer
communication, and more.
Here are some common examples of e-business
activities:
Online shopping, Online banking, Online advertising,
Customer service, Supply chain management, Human
resources, Marketing and sales.

3. Risks And Threats In E-business Implementation:
• While e-business offers significant benefits, its implementation
also comes with various inherent risks and threats.
Here are some Risk/Threats that are the most common ones:
1. Security Risks
2. Operational Risks
3. Reputational Risks
4. Legal and Regulatory Risks
5. Financial Risk
6. Competitive Risks

4. Security Risk
Data breaches:
Hackers can steal sensitive customer information such as
credit card numbers, passwords, and addresses. This can
lead to financial losses, identity theft, and reputational
damage for businesses.
Malware:
Malicious software can infect websites and steal data,
disrupt operations, and damage the company's reputation.
Phishing attacks:
Hackers can trick users into revealing personal information
by sending emails or text messages that appear to be from
legitimate sources.
Example: In 2017, Equifax, a major credit reporting
agency, experienced a massive data breach that exposed the
personal information of over 147 million people. This
incident highlighted the vulnerability of personal data stored
online and the importance of robust cybersecurity measures.

5. Operational Risks
System failures:
Technical glitches or outages can disrupt online operations and lead
to lost revenue and customer dissatisfaction.
Supply chain disruptions:
E-businesses rely heavily on their supply chains for delivering goods
and services to customers. Disruptions in the supply chain due to
natural disasters, pandemics, or geopolitical events can significantly
impact business performance.
Human errors:
Mistakes made by employees can lead to financial losses, data leaks,
and other problems.
Example: In 2018, Amazon Web Services, a major cloud
computing platform, experienced a major outage that disrupted
services for many businesses, including Netflix, Spotify, and Airbnb.
This incident showed how dependent businesses have become on
cloud services and the importance of having a robust disaster
recovery plan.

6. Reputational Risks
Negative customer reviews:
Unhappy customers can share their negative experiences online, which can damage a company's reputation and
deter potential customers.
Social media backlash:
E-businesses can face public scrutiny and criticism for their actions on social media. This can lead to negative
publicity and damage the company's reputation.
Product recalls:
Product safety issues can lead to product recalls, which can damage a company's reputation and result in
financial losses.
Example: In 2016, Samsung was forced to recall its Galaxy Note 7 smartphones due to a fire hazard. This
incident resulted in significant financial losses for Samsung and damaged its brand reputation.

7. Legal And Regulatory Risks
Data privacy regulations:
E-businesses must comply with a complex set of laws and
regulations, which can change frequently. Failure to comply can
result in fines, penalties, and even legal action.
Cybersecurity regulations:
Businesses may also be subject to cybersecurity regulations that
require them to implement specific security controls to protect
sensitive data of customers.
Intellectual property infringement:
E-commerce businesses need to be mindful of intellectual
property rights, such as copyrights and trademarks, to avoid
legal disputes.
Example: In 2020, the European Union fined Google a record €5
billion for violating GDPR by collecting and using personal data
without proper consent.

8. Financial Risk
Investment costs:
Implementing and maintaining an e-business platform
can be expensive, requiring investment in technology,
infrastructure, and personnel.
Payment processing fees:
Online payment processors charge fees for each
transaction, which can impact a business's profitability.
Businesses need to choose payment processors that offer
competitive rates and reliable service.
Currency fluctuations:
E-commerce businesses that operate internationally are
exposed to the risk of currency fluctuations, which can
affect their profitability.

9. Competitive Risks
New entrants:
The e-commerce landscape is constantly evolving, with new
competitors entering the market all the time. This can put
pressure on existing businesses to innovate and adapt to stay
ahead of the competition.
Disruptive technologies:
New technologies such as artificial intelligence and blockchain
can disrupt existing business models and create new challenges
for e-businesses.
Changes in consumer behavior:
Consumer preferences and buying habits are constantly
changing. E-businesses need to stay up-to-date with these
changes to remain competitive.
Example: The rise of online marketplaces such as Amazon and
eBay has made it easier for new businesses to enter the e-
commerce market. This has increased competition for established
businesses and put pressure on them to offer competitive prices
and products.

10. Mitigation Strategies
By understanding and addressing these risks and threats,
e-businesses can mitigate potential harm and ensure their
long-term success.
Implement robust cybersecurity measures:
This includes using strong passwords, firewalls, and
intrusion detection systems.
Develop a business continuity plan:
This plan should outline how the business will respond to
disruptions such as natural disasters or cyberattacks. Stay
informed about legal and regulatory changes:
This will help businesses comply with the latest laws and
regulations.
Build a strong brand reputation:
This involves providing excellent customer service and
being transparent about business practices.
Continuously innovate and adapt:
This will help businesses stay ahead of the competition
and capitalize on new opportunities.

11. THANK YOU