Question

Describe briefly the data storage and transmission risks in e-business

Answer 1

(a) Data storage risk: Data stored in a system is subject to various kinds of risks, especially during business transactions. If data get into the wrong hands, they may be used by individuals to fulfill their own purposes. In addition, because of malicious and pirated computer software, the data stored may get corrupted by virus attacks.

(b) Transaction risk: Online transactions are highly prone to the following risks.

(i) Default on order taking or giving: Such a situation arises when either the seller denies that the buyer has placed an order, or the buyer denies that he or she has placed an order.

(ii) Default on delivery: This refers to the situationwhere the wrong goods are delivered at the right place, or the right goods are delivered at the wrong place, or the goods are not delivered.

(iii) Default on payment: This refers to the situation in which the seller does not receive payment, while the buyer claims that he or she has made payment.