Risks Involved for Amazon Essay Example

with that of the suppliers and so on and so forth. Provide IT Governance In every environment, governance is needed and when the entire business is based on IT, it is of utmost importance to make sure that not only the implementing is done in a proper way but the supervision is done in the most apt manner possible. Risks Involved for Amazon.

Com and Recommendations Despite the existence of internet over the years, it has still not been able to gain trust regarding the transactions online.Amazon. com along with other organization based online for selling face the challenge of assurance of security to its customers. As for Amazon.

com, it failed to provide trust in regard of security to e-commerce project because they did not concern about technical risks. Despite the presence of a huge customer base, a lot of potential customers are hesitant to buy from amazon. com because of this particular reason. However, there is a long procedure regarding the security of credit cards and its personal information which is utilized by many websites present today.“Many sites that accept credit cards claim they are secure when they have an encryption certificate. This is where you can see the padlock symbol at the bottom of the screen.

The encryption certificate encodes the message with the credit card details when it is sent and the organization issuing the certificate (e,g, Thawte or Verisign) verify the business before they issue it. (E-commerce Security, n. d. ).

Amazon. com follows the same long procedure of ensuring that the customer feels safe but even then there is a lot of chance of stealth of the information and

its misutilization might lead to disastrous losses to an individual.This is the fear that stops the potential customers from entering into the market of internet. “If credit card numbers are stored on a server they are still potential targets for a hacking attack.

Afferent Media protects its server with anti virus and firewall systems. Its ultimate defense though is that it does not store any credit card numbers” (E-commerce Security, n. d. ). Hence, despite the effort, due to technical risk involved Amazon.

com is facing the same threat as many other online retailers. Although Amazon.com has developed a trustworthy image over the years but when it comes to monetary losses people are hesitant to take risk as the loss incurred might get too huge to counter. This technical risk can however be countered in order to gain the potential customers that are hesitating at the moment.

This can be countered if “transactions are carried out in real time, in just the same way as an EFTPOS machine. The message is encoded and sent to the bank, if the card passes the checks then funds are transferred directly to the vendor. This is just like when you buy petrol or shop in a supermarket.The vendor swipes your card in and EFTPOS machine, they do not store the card details. ” (E-commerce Security, n. d.

). Like every weakness, if this factor is also addressed in its early stages it might not even classify as a problem and may be included in one of the challenges but the more Amazon. com delays it, the more it might lead to disaster and reduction of customer base. It

has the advantage that the solution has already been identified, therefore the company just needs to incorporate this procedure in its security e-commerce procedure and keep proper checks and balances over a period of time and the job is done.Once the authenticity of the procedure is verified, it would not be hard for customer to develop trust in the online services.

Despite the overall success of the organization, there are still factors that it needs to counter before the issues convert into real threat to the existence of the organization. The security factor is always vital in e-commerce as no customers would want to risk their monetary gains for shopping online.BibliographyJoin Associates. (2007). Retrieved on 11th March 2007 from http://affiliate-program.amazon.

com/gp/associates/join Business News. (2007). Amazon. com to Webcast Investor Conference Presentation Morgan Stanley Technology Conference. Retrieved on 11th March 2007 from http://seattle.

dbusinessnews. com/shownews. php? type_news=latest&newsid=110363 B2C e-commerce design and performance for Amazon. com, BN.

com, & Half. com. (n. d. ).

Retrieved on 11th March 2007 from http://homepages. wmich. edu/~b1walton/proj1. htm Amazon. (2007). Retrieved on 11th March 2007 from www.amazon.com