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E-commerce: Risks and managing them

When a businessman chooses to go the e-commerce way, there are certain risks of the traditional trade that he is surpassing, but a few more that he is ready to face.

Risks in E-commerce Business

Before the emergence of technology and internet, business followed the traditional path. While at that time business had certain advantages and certain disadvantages too, the situations remain similar if not the same, after electronic commerce lead the way for the businessmen, retailers and of course the customers.

When a businessman chooses to go the e-commerce way, there are certain risks of the traditional trade that he is surpassing, but a few more that he is ready to face. Here is a list of few types of risks that you can be ready to deal with at all times. While risks are absolutely unavoidable, you can at least be armed to fight that back. It might need y some time, but with the right techniques you will at least to be defeated. Being cautious might also help you fend off some risks, which are technical, and thus associated only with e-commerce.

Sabotage or Defacement: All the business transactions and deals going on through online methods, you being a businessman can also face the problem of attacks. There are different malicious attacks like – virus, worms and Trojan horse, that your system can be a pray to. You should always have a good anti-virus and keep it updated to impede any such kinds of attacks.

Unauthorized access: While you may not be aware of and trust your employees the best, you might never know who accesses your data and account illegally. Unauthorized access to your data can also be done by outsiders. Poor configuration of systems and poor encrypted transmission are few factors that can let others access your confidential business data illegally. You must also be careful to choose strong passwords, and avoid hint questions like – ‘maiden name of your mother’ or ‘school you went to’. In most cases you can form your own question. Do that wherever applicable; and if not try choosing your hint questions in a way that will not let anyone guess it or know it.

Degradation of performance: Machines make our life easier, and technology makes it luxurious. But even technology is bounded by certain barriers. Busy network, with heavy traffic is a common problem. Hardware and software can also cause you troubles at any time; yes, might also be when you are on a major transaction. Your processor speed and data storage might also pose as a problem for degradation of your system’s performance.

Ways to deflect such crisis:

Legal:- You must refuge to audit and assistance to alleviate any company risks regarding the financial matters.

Hiring efficient employees:- Your human resource management need to be expert in choosing good business analysts, system administrator, programmers, database administrator, testers and system designers.

Technology: As you choose the e-commerce way to do business, you must be updated with all the new technology and software that are coming into the market. You need to adopt those for the best results to derive out of your business, besides helping it stay away from any sorts of malicious attacks, and virus attacks. Good anti-virus and turning on firewalls will diminish the chances of getting your systems attacked. You must also regularly install new updates that are available for your computers. Spywares and malwares are also important to keep your systems safe.

For the constant change that is inevitable, there are more risks to be hindered by when you are doing business through e-commerce ways. You need to deal with such unforeseen risks, tactfully. Always remember that, risk is the first impediment of business. To learn to evade it and to manage it is the key for a successful business to take off.


Posted on: March 9, 2011 If you enjoyed this post then why not add us on Google+? Add us to your Circles

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