Electronic Commerce and Security - Risk Identification and Management Andrew Cheang Sek Lam Electronic commerce has played an important role of business model on the 21st century. Business can benefit from engage in electronic commerce. Internet based transaction is more affordable than traditional transaction. It allows more business partners to be reached and lowers cost of purchase, inventory, sales and marketing. On the other hand, it also raises security issues. That is the risk that an e-business encountered. The e-commerce risk management will be varied according to the information technology. This research is mainly to analyze the infrastructure of security in the e-commerce and security risks management strategies. Three cases are studied. The first case is CTM. As an ISP and merchant, its security management policy is worth to refer when we concern the security in e-commerce. The second case is a Government department. Its firewall implementation will be analyzed. In the last case, I will investigate the payment method provided by a bank in online shopping using SET and the strategy of online banking security. Finally I will conclude the development trend in e-commerce that is suitable for Macao environment.