The risk of e-commerce
Risk assessment means listing all of the risks a business might face and assigning varying degrees of importance to them. Risk management means prioritising these risks and formulating policies and practices to balance and mitigate them.
Every business can benefit from a risk assessment of their e-commerce systems, although smaller businesses may not need to implement some of the more sophisticated techniques described in this guide.
Unless swift action is taken, any problems with your e-commerce site will be immediately obvious to the world. E-commerce customers typically have little loyalty, so if your website is unavailable they will simply move on to one of your competitors. In addition, technical failure can also have a significant impact on your key trading partners.
It is therefore important that you take steps to prevent problems, as this is much more cost-effective than trying to fix them once they have occurred.