Managing the Risks of e-Business

Upton, N (2001) Managing the Risks of e-Business. Working Paper. London Business School Centre for the Networked Economy Working Paper.

Abstract

E-Business is risky business. The first step towards managing and minimizing the risks must be to be aware of what those risks are. Although the specific risks will vary between companies, it is possible - using what we have learnt about the Network Economy - to identify a set of seven sources of risk. Three of these sources are to be found beyond the organization's boundaries: criminals, the commercial environment and legal systems. The other four risk sources emanate from within the organization: people, processes, technology and business strategies. This paper looks at each of these seven sources of risk, using real examples, and suggests practical actions that companies can take to reduce their exposure to e-business risks.