Harley-Davidson, Identifying Ebusiness Risks
Harley-Davidson, Inc: Identifying eBusiness Risks and Related Assurance Services for the eBusiness Marketplace. Copyright © 2006 by Pearson Education, Inc., Upper Saddle River, NJ 07458.
TABLE OF CONTENTS
Risks Involved For Harley Davidson Since Integrating E-Business Into Its Supply Chain Management System 2
Internal Controls Which Harley Davidson Can Implement To Mitigate The Risks Identified And How Best Can These Controls Be Audited 5
Business Risks For The Harley Davidson’s Business Partners Due The Company’s E-Business System 6
Likelihood Of Impact Of E-Business On This Year's Audit At Harley Davidson: A Memo From The Audit Manager 8
References 14
RISKS INVOLVED FOR HARLEY DAVIDSON SINCE INTEGRATING E-BUSINESS INTO ITS SUPPLY CHAIN MANAGEMENT SYSTEM
The main risks associated with e-commerce are those of hackers, viruses, and interception of credit card numbers travelling over telecommunication lines etc (cl.cam.ac.uk, 2009). Certain technological developments seem to mitigate many perceived risks (Kaufman, Leslie, 1999) but some recent surveys have pointed out the issues of high costs involved in using this technology (McCartney, Laton, 1997). Hence no matter how much one believes that e-commerce system implemented at Harley Davidson is full-proof, considerable risks still exists in the system. The author has classified the risks which Harley Davidson is likely to face into following six categories which are information risks, technology risks, business risks, risks related to Branding and Reputation, Integration risks and lastly Project management risks.
Information Risk
Information risk as defined by Miller and Engemann in their paper titled, “Managing Risks In Electronic Commerce” is as follows [Quote], “Information risks stem from information published and contained in web sites and associated with the conduct of e-commerce. Peripheral to information risks are risks associated with misuse of information, such as violation of laws in the United
TABLE OF CONTENTS
Risks Involved For Harley Davidson Since Integrating E-Business Into Its Supply Chain Management System 2
Internal Controls Which Harley Davidson Can Implement To Mitigate The Risks Identified And How Best Can These Controls Be Audited 5
Business Risks For The Harley Davidson’s Business Partners Due The Company’s E-Business System 6
Likelihood Of Impact Of E-Business On This Year's Audit At Harley Davidson: A Memo From The Audit Manager 8
References 14
RISKS INVOLVED FOR HARLEY DAVIDSON SINCE INTEGRATING E-BUSINESS INTO ITS SUPPLY CHAIN MANAGEMENT SYSTEM
The main risks associated with e-commerce are those of hackers, viruses, and interception of credit card numbers travelling over telecommunication lines etc (cl.cam.ac.uk, 2009). Certain technological developments seem to mitigate many perceived risks (Kaufman, Leslie, 1999) but some recent surveys have pointed out the issues of high costs involved in using this technology (McCartney, Laton, 1997). Hence no matter how much one believes that e-commerce system implemented at Harley Davidson is full-proof, considerable risks still exists in the system. The author has classified the risks which Harley Davidson is likely to face into following six categories which are information risks, technology risks, business risks, risks related to Branding and Reputation, Integration risks and lastly Project management risks.
Information Risk
Information risk as defined by Miller and Engemann in their paper titled, “Managing Risks In Electronic Commerce” is as follows [Quote], “Information risks stem from information published and contained in web sites and associated with the conduct of e-commerce. Peripheral to information risks are risks associated with misuse of information, such as violation of laws in the United
References: Risks related to Branding and Reputation As per Stevens and Fowell, E-business systems offer greatest risk to the good name of the businesses products (Branding) and the good name of the business itself (Reputation) (Stevens, Fowell, 2002) As stated by Miller and Engemann in their paper titled, “Managing Risks in Electronic Commerce”, a typical standard e-business risk management process can consists of three phases (Miller, Engemann, 2009) which are listed below Preliminary Risk Assessment Bruce Nearon. (2009). Auditing E-business. Available: http://www.nysscpa.org/cpajournal/2000/1100/features/f112200a.htm. Last accessed 10 May 2009. Cl.cam.ac.uk. (2009). Protecting E-Commerce Systems. Available: http://www.cl.cam.ac.uk/~rja14/Papers/SE-19.pdf. Last accessed 10 May 2009.