Abstract Good Stuff Inc. faces some challenges as a result of its old POS systems. The old POS systems are always associated with hidden costs and numerous factors. The new system also comes with an additional cost, for instance, the cost of training staff and integrating the new system with the existing systems. Also, the cost of acquiring a new system is slightly higher than the cost of upgrading the existing one. Therefore, it is cheaper to upgrade the existing system instead of acquiring a new one. This essay will analyze the risks associated with the company’s POS system and provide alternative solutions. This will be achieved by exploring different models and concepts and key arguments between authors and their theoretical positions. Introduction Company Overview Good Stuff Inc. is a company based in Bellevue, Seattle. It started as a retail store in downtown Bellevue in 1980. By 1995 the company had grown to have six stores scattered throughout the Seattle area. Good Stuff Inc. established a retail presence on the web in 1998, which has been maintained and modernized over the years. Currently, over 40% of the company’s business is done online. The company’s website is built on active server pages. The site uses an MSSQL database to store the items for sale and their descriptions and is hosted on two Windows Server 2007 computers running IIS. The database is on a third server. Also, there is a development machine that is used for designing and testing updates to the website. The company is connected to the Internet via Digital Subscriber Line (DSL). Each of the retail sites also has an Internet connection, which is used to report sales data from the Point of Sale (POS) system to the company’s main server. All systems in a location are on the same segment and are configured using the default of 192.168.0.0. The company’s plan to upgrade its Point of Sale (POS) system last year failed. As a result, it is still using the older POS system purchased in the 1990s and runs on S400 located in each store. In addition to the website and POS system, the IT department has a server that supports the company’s installation of its accounting system. The system has not been upgraded since 2001. The accounting department is hesitant to update it because they are satisfied with the performance of the system and feel that the stress of changing the system will be too great. The essay will focus on risk analysis of the company’s POS systems and come up with probable solutions. Before we proceed, it is important to understand what risk analysis entails. Risk Analysis Andrews and Moss (2002, p. 3) describe risk as a probable situation that entails an undesired event or occurrence. Risk management, on the other hand, is the coherent process of identifying, appraising, and minimizing risks. Risk management is also defined as a process through which businesses procedurally handle undesired events or occurrences related to their activities with the aim of benefiting each activity across its portfolios. Therefore, risk management enhances the understanding of probable causes of risks and their impact on the organization (Andrews & Moss 2002, p. 4). Risk analysis is part of the risk management process. It involves identifying, reporting, and assessing risks. Risk identification focuses on identifying an organization’s exposure to risk and uncertainty. Risk identification demands extensive knowledge of the organization, its market, l