Any organization that conducts business online is always at risk, regardless of its size. Threats to the eCommerce website will often include account ransoms, GDPR violations, data breaches and the occasional hack from web-based vigilante groups. This is why risk management is such a vital component for an eCommerce business.
Company owners need to work hand-in-hand with their IT managers to make sure that all operational hubs are secured.
System inactivity is always detrimental to a business. Its effects will often include substantial revenue losses and in the case of system hacks, the potential for loss of client and company resources and data. But this does not have to happen to you! With the right risk management process, you should be able to safeguard your data and protect yourself from losses.
Consider the following tips:
1. Train Your Employees and Educate Yourself on eCommerce Risks
Your risk exposure is primarily dependent on your operational practices, business policies, fraud detection, prevention tools and the risk mitigation procedures in place. It’s also influenced by the type of services and goods provided by your company, including the security controls implemented by your IT team.
Each person working in your company ought to have a good understanding of the various risks that come with online transactions. Having understood these risks, it shouldn’t be too difficult to implement and follow the risk management procedures which have been put in place.
2. Find a Reliable Payment Processor
A trusted, reliable and professional payment processing company is better placed to provide you with the risk management assistance and support you require. It may be an expensive investment but a valuable one nonetheless. The process will also be well-versed with the various types of online frauds that are preventable and can assist you to prevent their occurrence.
Data protection capabilities are essential when choosing your preferred payment processor. Business loans are available to secure your preferred payment processor regardless of what the price may be.
3. Generate Essential Web Content
The eCommerce website will need to prominently displace refund, shipping, and privacy policies. A good website is one that is not only simple but also provides a simple navigation journey for consumers. Ensure that you place links in all the aforementioned policies to ensure that they are displayed on each and every page.
Still, on matters related to your websites, you have to be careful when choosing your cloud hosting partner. You will want to work with a company that can guarantee 99% uptime, and round the clock support. Given that you’re running a business, you can’t afford to go offline even for a few minutes, as this could lead to customers heading over to your competition.
4. Place Your Focus on Reducing Risks
Having a professional sales order process is instrumental in making sure that you address the risks concerning your customers. For instance, in an online payment form, you will need to highlight or indicate all the required transaction fields.
5. Come Up with an In-House Fraud Prevention System
How profitable your company will be at the end of the year is dependent on the type of structures you have put in place. For you to remain profitable, you need to have internal controls and strategies that can reduce fraud cases. A good risk management process coupled with enough transaction controls should make it easier for you to prevent and reduce cases related to fraud.
6. Safeguard Cardholder Information Via PCI Compliance
Ecommerce merchants can rely on the tools, procedures, and standards provided by the Payment Card Industry Data Security Standards for protecting user data. This calls for the merchant to make use of high-quality encryption standards when transmitting data to and from the cloud server.
Your eCommerce store will also need to have efficient internal controls for protecting and safeguarding cardholder information. Existing security measures will also need to be reviewed on a frequent basis.
Security breaches and internet fraud has proved to be very costly for many eCommerce stores and merchants. The only way to protect your company is to take time to understand the risks that come with doing business on the internet. Your company personnel will also need to undergo training to help them get a good understanding of various internet fraud transactions such as chargebacks.
Delan Cooper is an experienced marketing & communications writer. He enjoys meeting new people and reading books to inspire his own work. Connect with him on Twitter.