Operational Risks for Online Businesses

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Operational Risks

Website Updating

Websites need updating regularly so that the information provided is current and product descriptions and lists are accurate. There is nothing worse than for a customer to see pages that have not been amended for a year or more. In some cases incorrect or out-of-date information can create serious problems.

Payment Security

Most online customers expect to be able to pay for goods they buy by debit or credit card. However, they also have to be certain that their personal details will be kept confidential. Newspaper headlines about fraud, hackers and identity theft obviously put people off. To be secure, all online payments need to be:

  • Private and confidential between the buyer and the seller
  • Authentic because both people are who they claim to be
  • Conveyed intact and without any changes or alterations during transmission
  • Erased from the system after process has been completed

Errors in Ordering

Orders forms should be designed to be as fool-proof as possible to minimise customer errors. The site should also be designed to prevent customers making obvious mistakes, such as cloning an order by submitting the same order form twice.

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Unfamiliar Trading Conditions

These can affect both the business and its customers. The main reason online trading was pretty slow to take off was because customers were worried about purchasing online. Usually, once new customers have successfully buy goods online they became less stressed with online shopping.

Businesses that are used to working on a small scale or dealing with customers on a personal level find it difficult to adapt. They may even misjudge the popularity of their website and many other mistakes may occur.

A business that is less successful then what it was expected to be may have ...

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