Risks Of E-Business Essay

E-business is a platform to any existing business enterprise which provides a medium to operate all business processes (Grant, Kevin, et al..99). It is a risky business due to many uncertainties on the success or failure of the organization. Risks associated with E-business includes;

Business risk: improper implementation of the e-business strategies can result in loss of good reputation and goodwill from consumers or vendors. The risk occurs due to market inflexibilities, and agility of a firm applying new trend in the industry. They are related to daily operations and decision making of an organization.

Financial risks: they are those situations that enterprise faces, and they can be expressed in monetary values. Since they can be quantified,

To properly manage these technologies, ICT is the key factor for the business progress. If the enterprise is not able to handle the development of technology, then it will find itself in trouble and with high chances of failure.

Legal, regulatory or compliance risk: there is an increasing legislation framework that companies need to be aware. They include; E-communications, data protection and integrity, correctness and accurate data supply among others. A lot of consideration must be given to the laws of a nation in which an enterprise operates on through e-business.

Operational risks: they results from the uncertain and weak infrastructures and equipment. They include; loss of power, attacks by a virus, hackers, and crackers among others. The risks can limit an organization from achieving its objectives due to the operational difficulties.

Question

The two are complementary functions with the aim of quality assurance. Both forms of the review are essential for effective business governance on IT. The two need to be independent, adequately resourced, and work in close cooperation according to laid down international standards (Harrison, Mark: 38). They need to report separately as they perform different functions with the aim of controlling the quality of information technology in an enterprise.

Essentially, individuals that undertake the two undergoes the same training and almost acquire the same knowledge. Also, the external auditors primarily rely on the report prepared by the firm’s internal auditors. Some differences that exist between the two are;

The external auditors provide assurance to the company’s shareholders while the internal auditors give assurance to the audit committee, senior management and the board of governors. Also, the external auditors provide opinions on financial statements to the shareholders with financial reporting risks, while the internal auditors cover all the risks associated with the whole system and how to manage them. Therefore, the management and the regulators should consider some differences between the two when creating policies to govern