Most people have used e-business and e-commerce interchangeably, though the two have separate notions. Electronic- commerce ICT is employed in transactions among various organizations or businesses and extends to transactions of business-to-clients. Contrary, in e-business, ICT is used in enhancement of individual businesses. It is composed of businesses that firms/organizations carry out above computer-mediated system. In the rising of international markets, e-business and e-commerce are progressively turning to an essential constituent of business stratagem and a sturdy economic growth catalyst. The mergence of connections and information machinery (ICT) in business has transformed and enhanced relations in different associations like the ones amid firm/organizations and persons (Ochieng’, 1996).
Globalization of business operations have resulted due to e-business and e-commerce. The organizations that benefits mostly from e-business and e-commerce are internet based and few are non-internet based. However, regardless of the significance of e-business and e-commerce plus the great success that various companies and their achievements, the companies are faced by numerous risks and challenges. The paper chiefly illustrates the processes that are used to identify risks, their management and reductions. It looks deeper into the internet company (Google), the risks that it is exposed to, there management and reductions to less dangerous levels. The paper as well deals with the drawbacks that Google has faced in expanding into a global market (Abele, 1994).
Google have taken a golden opportunity in internet business. It is one of the mostly visited sites in the whole world. However, for its success, it depends on other resources as it gets support from these areas. Particularly, ICT has improved its yield, promoted better client involvement, and permitted mass customization, as well has decreased expenditures that Google might have incurred without ICT. We can hence say that without ICT Google would have not been in existence. With Web-based and Internet skills improvements, peculiarities amid former markets and international electronic market places are steadily being lessened. Google has so far utilized strategic position; it has utilized emerging internet marketing and operation chances. And presently, the revolution of a firm’s operations to give extra value to consumers by the know-how applications has been the main concern of major global business Google being a perfect example (Edith, 2009).
The internet based supporters (ICT) that Google relies on has enhanced exactness in it information, excellence in performance and reduced time wasted as it (internet) is first and convenient. One can imagine what would be the world without the internet! Most of the businesses would have not been in place. Electronic business has facilitated connections and information acquisition. As if not enough, it has contributed to the expansion of client base and development in market prospects. Electronic business is accompanied by many advantages and demerits in relation to management implications (Crouhy, 2006).
On the other hand, (though internet has numerous advantages) but the managers have found it quite hard to compete with the dynamic conditions of the customers and the effects they are associated with. Risks have increased to very high levels as the technology expands to global markets. This has caused numerous changes in Google Company among other internet-based companies. Most companies have failed due to lack of risk management. This can be in numerous ways and due to various reasons (Crouhy, 2006).
It is either they are unable to identify the risks or are not able to deal with them.
In the case that a new project is developed but the risks that are affecting it are too heavy for it, the project ends up failing. For the globalization of the Google Company, risks have been managed appropriately and reduced to manageable standards. This can be one of the strategies that it is using to improve its services and increase its customer base. The customers are confident of Google and consider it as a reliable site. Less information is mishandled by wrong hands. This is implication of good management of its perils. Technology has contributed greatly to Google risks. Advance in technology has enabled numerous individuals to infringe into and tamper with Google operations (Abele, 1994).
Risk management in Google
Risk Management targets at the enhancement of information exchange and knowledge athwart organizations and customers. The reason of management of risk is to produce views and encourage better performs for the people concerned with the action of managment of uncertainties in various businesses like Google. Risk management can be regarded as the process where firms and associations systematically deal with the dangers that are likely to affect the smooth running of their operations and connections with the clients (Edith, 2009).
The fail/reduction in the connection acts as drawback in the achievements of Google’s objectives and running of its operations. Good management of risk enatils the location and dealing with the risks. Good risk management that involves risk taking and reduction aids in the increment of organization operations and activities. This is what has been applied in Google Company. Management of risks raises the chances of success and decreases the probability that the company will fail and the dangers of getting the firm’s aims not fulfilled (Crouhy, 2006).
The management of risks should not terminate any time a specific risk is identified and managed. This can be seen in Google Company which faces numerous risks but deal with them successfully. It is supposed to be a progressive action that is throughout the strategies of that organization and its implementation. New risks occasionally unexpectedly chip in. The risks have various origins but in the case of Google, IT is more and more being used to commit scam and burglary. The internet and systems of the computers are daily exploited in many ways. They are exploited by automating former ways of scam and new ones (Ochieng’, 1996).
Frauds are done by both the individuals in the system and the people that come from elsewhere. The rate of committing scam by insiders is relatively higher as they are aware of the operation system of Google. This is due to the fact that they are fully inside and are quite aware of the operation programs and system of the organization. This type of risk becomes very difficult to note, deal with or control. It is born in the business and affects the people who create it plus the customers. It is one of the most expensive and difficult to deal with risk. Not only scam and burglary but there are several risks that the companies that trade online like Google are exposed to (Ochieng’, 1996).
Another danger is suppose there is control systems that are online which can be ruined occasionally. As the world advances, so does the risk. In the modern world, lights, powers, in many regions are controlled by computers. This has extended to even the movement of commodities from one place to the other (Abele, 1994).
This is risk because the system can become defective. At times they are hijacked or diverted to other areas. Their delivery is also dependent on the operation of that respective computer (system) and any fail will cause their late delivery or being not delivered. Google is based on the services that are offered by internet and incase, internet fails so does Google. This is the greatest risk it faces.
Process of risk management
There isn’t one single formula that is applicable (universal) in all conditions and all types of risks. The risks are reduced using numerous methods. All the aspects and suggestions are very vital in the management or risks. Decrease of the Resources that are subjected to that risk is one of the methods. This might engage terminating resource entrée by other people but only the concerned personnel. Taking example with Google company, some resources and sites should be accessed by specific people but not the whole employers and employees. The multiple accesses often create errors as corrections are made by everyone. The good example in this case is Wikipedia. All the sites and data are exposed and anybody can change them any time in the whole world. This reduces risk though cannot eliminate it (Crouhy, 2006).
In the recent past, there has been a great change in the way different companies’ and Google manage their risks. The roles of risk managers have been double worked in finding the appropriate method and practices. Risk being, unpredictable interference on a given companies objectives, the managers hence undergo difficulties in identification, evaluation and prioritization. The numerous methods used in management of risks that involves their transfer are not valid in other organizations. Risk avoidance is both difficult and at times cannot happen, but risk reduction is more applicable and accepted (Abele, 1994).
This is after the affected individuals have accepted all the consequences associated with that particular risk. Apart from consequences of acceptance of risks is to create value, portion of making decisions, clearly address uncertainty, among many more (Ochieng’, 1996).
Risk management has been dealt with differently in various companies and organizations. The process starts with identification and analysis and consequences management. The management of risks entails numerous steps. The steps have can be employed at diverse junctures in the process of management. The process starts at the point where planning is made regarding the project.
The example of such projects is when Google wants to create another site. In the process, the scope of the project (new site) should be well defined, and issues that might affect it identified. This is followed by analysis of risks that it is exposed to. The risks should include even profits and possible loses. Suppose it is exposed to risks, the respective risks are listed in order of intensity. The probabilities of the identified risks are identified and the impact each has on the progress and success of the organization. All the risks cannot have the same effect and chances of occurrences as same will be minor and others major and so the minor are discarded. The examples of minor risks in development and launching of new sites are lack of customer notification of the new site (Edith, 2009).
These minor risks, the organization can go plus as it knows that soon they will either be absorbed or reduce their effects. The major ones need immediate attention and should be addressed as soon as they are identified. An example is fraud. The way the major hazards are responding to management should be viewed (Abele, 1994).
This will aid in choosing the appropriate method and strategy in future if the same risk affect the company or organization later. The most appropriate method that gives maximum response is to be selected and employed. The preventable should be prevented, the other that cannot be stopped, or accepted and dealt with after acceptance, and suppose they can be transferred this should be done (Ochieng’, 1996).
The process of managing risk is a repeating adaptable cyclic course and practical at a variety of phases of life of that project. Risks identification begins with the identification of the activity and assessing it. At this juncture, it is true that the risks identified are the major ones (Edith, 2009).
Suppose risks level large, the project might not go on. It is to be terminated and the less risky one looked for. This is because when the progress is made while the level of risk is high, the project might turn into loses instead of profits. If the project is to progress, the given company must be aware of all the risks, their consequences and prevention. The company should be able to manage the identified risks appropriately for the implementation of that project. At the start, there should be thorough assessment of risks and early management without which no project can proceed (Crouhy, 2006).
Though all the risks, Google is able to deal with but it has become a great problem when it comes to fraud. It is therefore essential for future researchers to do appropriate research and address this issue in details. This will aid inline companies in managing their businesses as well as protecting them.
The approach given to the management of risk can vary from one risk to the other. The risks do not have same intensity and effects on the organization. The approach that is used by Google comprises of numerous sections. It includes four sections, which are setting of the objectives to be reached after a given time, appropriate preparation, plan/project implementing, and business performance controlling (Abele, 1994).
It is appropriate tom commence by setting the objectives of the business as it gives track, as well the remaining three elements give description of the business management process to obtain the set goals. Management of risk is an element of arrangement and implementation. It is vital for all the managers of businesses to know the type, effects and intensity of the risks that are facing the organization (Crouhy, 2006). When all this are done, the outcome will be the obtaining of the goals ands objectives that are set by that given organization. It also helps top prepare for the future coming risks and design the moist appropriate method for their maintenance.
This entails understanding the risk origin, and the effects that that particular risk is accompanied with, the events that gives loophole to the emergence of that risk and the desirable method of control or transfer. This will in the long run aid the administrators/managers in turn to give an identification of the gaps in their present program of peril management and will to gear them towards the setting of menace management precedence. It is comparatively uncomplicated to identify and classify a number of perils and talk about management strategies in broad perspectives.
Even though, the expansion of strategies of managing risk is essential but the effects that a given peril adds will result to extra expenditure and as well creates additional stress on the time of administrators. This is what has deprived Google from first development and enlargement (Abele, 1994).
Without this it would have moved numerous steps ahead and advanced it operations to offer other services as well. The other risk that is faced by this site is the copying and competition that other sites have. Their services are reproduced or offered by other sites. The best example is seen with other email providing sites that offer it competition. The end result is the spread of customers to these other sites. This is a risk and requires management. The possible management that can be offered to this kind of risk is the production and development of their services. They should check that they are up to date and satisfy the client’s utilities (Ochieng’, 1996). For these reasons, precedence has to be placed amid management of risk and further functions of management in Google Company.
In a nut shell, running a business in a perilous atmosphere puts a lot of manager’s time, power and perseverance. The cautiously created risk management policies are the solitary ways for the enhancement of the probability of business success. All the risks have to be identified and given appropriate management for the smooth running of that given organization. In the organizations where perils are poorly managed, they end up not fulfilling their objectives.
Abele, B., et al. (1994). Future risks and risk management. Volume3 , 2nd edition, pg 156- 176. Springer Publishers.
Crouhy, R. et al. (2006). The fundamentals of peril management. 2nd edition, 5th volume, Pg 43-57. McGraw-Hill Publishers.
Edith, J. (2009). Identifying and Managing Project Risk: Essential Tools for Failure-Proofing; pg 102-113.Edition2, Publisher AMACOM Div American Mgmt Assn.
Ochieng’, J. (1996). Risk management: managing risks of projects. 6th edition, 2nd volume, pg 209-234. Prototroph Publishers.