1.1 Technology/Trend DefinitionSecond Life: is an Internet-based 3D virtual world. It is the place where people can experience new life by meeting new people, exchange goods and services with their own currency and all other social networks through their avatars.1.2 Main general characteristics of the technology/trend for businessSecond Life is not just a gaming is the place where businesses can sell their goods and services to their residents. 1.3 Industry definition (banking, insurance and financial services) We can experience frontier capitalism and we can actually make money. We can test new banking and financial services or learn such systems. Since it is programmed for the web reality, we can analyze what will happen if we implement a new system in the real world and what will be the risks and benefits we can derive from it.2.1 Evaluation of the potential business benefit (B) and risk (R) of the technology to the industry Potential benefit to the company B5 Potential risk to the company R32.2 Potential risk/benefit to the company – Discussion4 million residents are in SL, companies can use this virtual world as a new business opportunity. By selling their products they can also test or promote brand marketing activities, event organisation, training and simulations. In SL there are some manufacturers and brands such as Microsoft, Adidas and many others. These companies were not founded specifically for SL but have inserted themselves into this virtual world. Banking, insurance and financial services are not much involved in this virtual world, but if they do there will be benefits and risks for them. Banking and financial services can promote their brand through SL, for example they can start a business in SL and residents will use their services and as a result the reputation will increase and also companies can test their new products like new banking or insurance products and analyze the result to apply it to the real world. But since SL was first introduced in 2002, the number of residents will continue to increase as time goes by. Therefore the benefits that could be expected for now are not so many, but in a few years the SL market will become much bigger and there will be many more opportunities for businesses. However there are potential risks for businesses as well as benefits. Although SL is a virtual world, companies will still need setup costs and operating costs, these expenses will be much lower than in the real world, but if such companies fail to satisfy SL residents, reputation and brand will be disadvantaged from the result.