An Enterprise Risk Management Framework for the Global Trading of Digital Goods

Digital goods, such as multi-media, music files, animation, e-books, online consulting, and application software, are now traded globally online. The new business model created with digital goods faces various risks, some of which are unprecedented in the traditional trading of physical goods. Thus, companies producing digital goods should understand the new risks in order to properly trade the digital goods. This research presents supply chain activities which are involved in digital goods from producing the components to globally selling digital goods to consumers. Furthermore, it has identified a comprehensive list of numerous risks involved in the global online trading of the digital goods, presents a risk factor framework with four categories (i.e., environmental risk, strategic risk, technological risk, and operational risk), and shows a newly developed framework for establishing a risk management system for trading digital goods globally online.