Many large British companies are setting up internet project teams without due regard for the risks involved, claims AIRMIC's new e-com-merce Special Interest Group (SIG).
A snapshot survey of members shows that three-quarters of the companies involved have set up a working group to deal with e-commerce issues, but only two-thirds of risk managers questioned had been consulted. Not surprisingly, more than 80% of risk managers felt that they should have been.
Two out of three group members viewed e-commerce as a natural evolution of business, not one presenting a unique new area of risk. As such, 80% felt that e-commerce risks could be controlled using traditional techniques.
However, the survey flagged up a major concern, with a significant 95% of members saying that the insurance market does not have an adequate understanding of the risks associated with e-commerce. Although a healthy number of their brokers (60%) had provided
some help in tackling the problems, only 27% of respondents felt that there was currently adequate capacity and coverage for e-commerce risks. Even fewer (20%) felt that the provision of insurance products was adequate.
Many risk managers did not feel they fully understood the legal and technical aspects of e-commerce, but felt they did not need such knowledge to manage the risk issues.
Respondents highlighted fraud as their primary e-commerce concern.