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Business Studies · Ch 5 — Emerging Modes of Business

Security and Safety of e-Transactions: e-Business Risks

5.6

Security and Safety of e-Transactions: e-Business Risks

Unlike arm's-length transactions in physical exchange, online transactions are prone to a number of risks. Risk refers to the probability of any mishap that can cause financial, reputational or psychological losses to the parties in a transaction. Because such risks are more likely online, security and safety become the most crucial concern in e-business.

These security and safety issues can be discussed broadly under three headings:

  • Transaction risks
  • Data storage and transmission risks …