How to Implement a Risk Management Plan for Ecommerce Websites
Not assessing the security and potential risks that can affect businesses online is one of the biggest responsibilities they carry, so why take the risk?
No matter the size of a company, if it conducts business online then there will always be an instance when that organisation’s website will be at risk.
Threats can include data breaches, GDPR violations, account ransoms, and even getting hacked by the likes of online vigilante groups.
It is imperative that company proprietors work alongside their IT Departments (or ply themselves with the knowledge) in order to secure their hub of operations.
Any period of system inactivity can be detrimental to eCommerce businesses, resulting in significant losses in revenue, whilst hacks can be potential fatal to a company’s data and resources.
Corrupted, withheld, or even leaked data will not only damage a company brand reputation, but can result in hefty fines following 2018’s new GDPR regulations.
What is Risk Management?
Risk Management is a procedure where a business identifies potential risks in advance, then analyses them in order to proceed with the necessary steps to reduce or halt the risk of the previously identified threats.
Eccommerce sites who undertake a thorough risk analysis generate a long-term strategy guide for its future; effectively safeguarding where possible, hardware, configuration, procurement, data, and more.
It can also contribute towards a business contingency/security plan.
What is the Risk Management Process?
The risk management process can be broken down into 5 key steps:
- Identify Risk
- Evaluate/ Rank
- Monitor & Review
The 4 Risk Management Techniques of the Apocalypse
01. ＿ Avoidance
Avoidance technique are made for decreasing the probability that a risk will transpire. Obviously, the lower the likelihood of a risk, the better, therefore, it’s arguably the best method for managing risks.
Examples of Avoidance
Issue – Implementing a new server will delay the launch phase of a new/rebranded website.
Solution – Delay the installation until after the rebranded website is launched.
02. ＿ Mitigation
The Mitigation procedure aims to reduce the impact that risks will create in the event one occurs. It’s usually executed in instances where the risk is significant and unavoidable.
Examples of Mitigation
Issue – An overabundance of product orders over a seasonal period.
Solution – Order extra stock prior to promotional period, or enable a temporary drop shipping method via 3rd party.
03. ＿ Transfer
It’s in the name – Transfer techniques literally move the repercussions of a risk to an external party. Although, it does pose a possibility of complications, it’s effective for circumstances where the impact can be precisely measured and fully addressed by this third party.
Examples of Risk Transfer
Issue – Risk that an employee will deliberately release consumer information at the detriment of a company.
Solution - Install Encryptions on company laptops, desktops, mobile devices & media, and truncate all sensitive customer information i.e. social security numbers, bank details, passwords, etc.
04. ＿ Acceptance
Risk Acceptance is an active process of readily accepting the consequences of a risk if it occurs. This might not sound a strategy at all, never mind a good one. This strategy is uncommon, but can be implemented due to how expensive other risk management options like avoidance & mitigation can prove to be. Businesses that are unwilling to spend a lot of money on avoiding risks that don’t have a high-possibility of occurring will most likely use this risk management technique.
Example of Acceptance
Issue - A project not completed on time.
Solution – Increasing the deadline for said project.
Is Risk Management & Risk Mitigation the same thing?
No, Risk Mitigation is simply an element of Risk Management; Mitigation a method which would be applied if its criteria met the needs of a business.
The Best Risk Management Technique for Ecommerce Sites
Avoidance and Mitigation are the most effective risk management procedures when it comes to eCommerce. Thorough planning prior to new & existing ventures or projects is best for business.
Although, not every business is the same. Cost restraints can be a major factor in selecting Risk Acceptance technique, or perhaps companies that lack the manpower or time to tackle risks would vie for Risk Transfer, so another party could solve any potential or active threats.
The very definition of risk management is choosing an option based upon the size and complexity of any potential threats.
How to Manage Ecommerce Risk
For online merchants, there are certain precautions that should always be incorporated into a Risk Management strategy.
Choosing the right credit card processing company will be important when it comes to understanding eCommerce fraud risk. Those who take into account the standard of a processor’s customer protection abilities would be wise in doing so, as they will likely be the one’s providing the most effective risk management support for their business clients.
Tackling and preventing fraud is of paramount importance; avoid fraud related losses through a streamlined risk management plan.
How to Protect Your Business from Cyber Attacks, Hackers, and Malware
There are many steps a business can take to prevent cyber-attacks, both internally and externally. It is especially crucial to businesses that store sensitive customer information.
There are many steps a business can take to prevent cyber-attacks, both internally and externally. It is especially crucial to businesses that store sensitive customer information, that steps are put firmly in place to prevent data loss or illicit data hacking with subsequent release.
Here is a handful of helpful tips on how to protect your website from data breaches:
01. ＿ Implement a Risk Management Strategy
As discussed, choosing a risk management technique is essential to safeguarding not only a company’s website, but also their brand reputation. It’s important that a business selects the right one based on relevant, determining factors.
02. ＿ Monitor & Address Suspicious Employee Activity & Behaviour
In an ideal world, all employees are happy in the workplace with no ulterior motives. Unfortunately, this isn’t always the case. If concerns become apparent or behaviour changes, employee monitoring software is a subtle option to undertake. It can detect when employees browse topics regarding (e.g.) hacking, internet chats, and significant declines in work-related actions.
03. ＿ Back-up & Save Your Data Frequently
If a data breach occurs and a lot of data is lost, then it’s not the end of the world if fundamental data is backed-up and ready to be reinstalled.
04. ＿ Limit Access
By setting up perimeter restrictions, businesses are effectively safeguarding sensitive data from hackers and employees – the latter should technically only have access to what they need, and be briefed with any sensitive data on a need-to-know basis. There are several software programs that are capable of restricting employee access to server locations, etc.
05. ＿ Ensure all Security Protocols are Maintained & Updated
The obvious. A good practice is to implement privileged user monitoring for system administrators. Restricting the creation of new system rules, advancing user privileges, or the editing of any configuration files. Ensure all security firewalls, anti-virus, and anti-spyware is updated at all times.
06. ＿ SSL Is Important For Every Website
If a business doesn’t have an SSL Certificate, then it’s vital that it’s set-up. SSL is used to protect sensitive information sent across the internet is encrypted so that the intended recipient is the only one who can access it. SSL is perfect for protection against hackers.
Notable Businesses Who've Been Hacked
Even some of the world’s biggest brands have fallen to the hands of hackers.
In 2018, Q&A social website Quora suffered a data breach that could’ve potentially exposed the personal data of up to 100 million users as a “result of unauthorised access” to one of its systems by what was described as a “malicious 3rd party.”
In 2014, Marriott International Hotel group revealed a huge data breach affecting more than 500 million guests from an attack by an unauthorised party who hacked their Starwood guest authorisation database.
Out of the estimated 500 million, around 327 million guests had a combination of name, address, passport numbers, and check in/out information stolen.
The key factor in deciding how to gauge the potential risk of exposure is down to the risk analysis of a business. Smaller organisations with little-to-no monetary or liability risk would be inclined to not invest in costly countermeasures in order to secure their system security.
However, if a risk analysis suggests that potential, specific threats could be detrimental to a business, then it is imperative that security protocols are put in place to safeguard the security and future of the business.
Always provide a thorough, concise analysis in order to determine how to address risk management requirements – not one online website (or person) is exempt from a cyber-attack.
Sherwen Studios is able to assist companies and improve their business performance by minimising risk and ensuring compliance.
We safeguard each website with precision, agility, and care; implementing contingency plans for each project and venture your business undertakes.
Contact us below to find out more about our Risk Implementation strategies.