Domain: Strategic Management
As business activities become more and more active in the online environment, banking functions are also required to adapt themselves so to support industrial growth. Bank of America is one of the most reputed banks in the U.S for delivering online banking services. Although the bank has progressed much, it was not without efforts taken towards risk mitigation. When banks become active and serve a large number of customers through their online platform, it becomes all the more essential for it to implement risk mitigation strategies and ensure lower credit risks. The present study evaluates the various types of risks which the bank faces in their online segment and how the firm plans to mitigate such risks. The research carried out reveals that credit default and breach of security of customer sensitive information are the main forms of risks faced in the online realm. The various strategies adopted by the bank to ensure better delivery of services in the online segment have been thrown light upon, for understating how the bank is able to maintain their superior position in the online banking industry of the U.S.