7 - E-commerce and Cyber Security Flashcards Preview

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Flashcards in 7 - E-commerce and Cyber Security Deck (9)
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What is electronic business?

Any online transaction


What is e-commerce?

Part of e-business and involves use of telecommunications to provide or exchange products and services

Requires the Digital transmission of accounting transaction info


Benefits of e-commerce?

Geographically dispersed customers
Large volumes of data
More time to fulfil orders
Lower overheads
Increased range of inventory
Lower stock cycle times
Better customer service
Lower sales and marketing costs
Competitive disadvantage not to have one


Benefits of e-commerce to consumers?

Electronic delivery straight to device
Increased availability of info
Greater range of products
Browse and purchase 24 hours
Locate more competitive prices
Increased personalisation


Risks of e-commerce

Reputation always - poor website
Legal - laws and regs


General business risks for e business?

New venture being unsuccessful
Loss of competitive advantage
Cash flow difficulties
High customer expectations
Loss of intellectual property
Reduction in customer satisfaction


Accounting policies and issues with e business?

Revenue recognition - principal/agent, offers and discounts, cut off

Stock levels


Specific risks of e-commerce? And controls

Data theft and loss - encryption
Electronic contract - disclaimers, t&c tick box
Server failure- remote service, back up, anti virus
Compliance- training, legal advice
Returns- inventory management, policy
Impersonation - passwords, training, software
Privacy (keep customer data secure) - passwords, secure systems



GDPR - 25 May 2018
General data protection regulations

All orgs collecting and processing personal data
Broader definition
How store and use

Up to 20 m fines or 4% turnover
Notify ICO within 72 hours of breach
Right to be forgotten
Right to access