Risk Management (Online Purchasing as an Example)

A company should be concern with the risks that threatens the company.   Some of these risks occur when a company uses the Internet for purchases.   Although often these risks are small for most purchases, important risks can exist.

The practice of risk management is evolving into a more recognized, systematic (methodical) task within a company.  In a smaller company, the accountant might be the best (only) person to take on this task.  This is a task where a proactive, innovative accountant might add additional value and be recognized for it.

A good approach, it seems to me, to the task of risk management, such that the management is successful, is to recognize where risks exist, to understand the nature of these risks, and then to implement the policies and actions based on this understanding, which minimize the risks.  This approach can benefit from an expert, thorough research of the Internet to find appropriate information to better understand the risks.  This research often leads to recommendations on policies and actions to minimize the risks.

 Provided below are 3 websites that provide excellent information on the risks associated with online purchasing and steps to take to minimize the risks.

A site maintained by the non-profit Privacy Rights Clearinghouse has a list of precautions when purchasing online.  Click here to go to this site and these precautions.

The Bureau of Consumer Protection at the US Federal Trade Commission has a website with information to protect purchasers.  Click here to go to this website and then click “Computers & the Internet” for protections related to online shopping.

The Department of Homeland Security has a site that provides guidance and risks about Internet purchasing from other countries.  Click here to go to this site.

Understanding the information at these three websites is a good approach to implementing policies and actions in your company that will reduce risks related to online purchases.  Identifying these websites demonstrates the value of competent Internet researching in risk management.