Internal controls for e-Commerce Q What is an encryption? Q It is the primary method of achieving confidentiality in e-commerce. Q Plain-text messages are rearranged by some mathematical process. Q The encrypted message cannot be read by anyone who does not know the process. Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity
11 Internal Controls for e-Commerce ⧫What is an encryption? ⧫It is the primary method of achieving confidentiality in e-commerce. ⧫Plain-text messages are rearranged by some mathematical process. ⧫The encrypted message cannot be read by anyone who does not know the process
Internal controls for e-Commerce The Internet Firewall o Corporate Intranet Network r Computers Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 12
12 Internal Controls for e-Commerce Firewall The Internet Corporate Intranet Network Computers
The Internal Control Integrated Framework ONTROL RISK Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 13
13 The Internal Control Integrated Framework
ERM Defined a process, effected by an entity's bc oara o directors, management and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the entity, and manage risks to be within its risk appetite, to provide reasonable assurance regarding the achievement ofentity objectives Source: COSO Enterprise Risk Management Integrated framework. 2004. COSO Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 14
14 ERM Defined: “ … a process, effected by an entity's board of directors, management and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the entity, and manage risks to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives.” Source: COSO Enterprise Risk Management – Integrated Framework. 2004. COSO
Why ERM Is Important Q Underlying principles: D Every entity, whether for-profit or not. exists to realize value for its stakeholders a Value is created, preserved, or eroded by management decisions in all activities from setting strategy to operating the enterprise day-to-day. Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 15
15 Why ERM Is Important ⧫Underlying principles: Every entity, whether for-profit or not, exists to realize value for its stakeholders. Value is created, preserved, or eroded by management decisions in all activities, from setting strategy to operating the enterprise day-to-day