SHOPPEE

Risks Management Plan for Shoppee

Submitted in fulfillment of the Final Output

For the subject

FME 221 Risk Management

DELA CRUZ, ROMAR A.

IDAGO, JOFFER DENNIS T.
DERRADA, MARY JANE L.
II. Risk Register
Impact/Likelihood Table and Risk Rating Table

SEVERITY

ACCEPTABLE TOLERABLE UNDESIRABLE INTOLERABLE

LITTLE TO NO EFFECTS ARE SERIOUS IMPACT COULD RESULT IN

EFFECT OF FELY, BUT NOT TO THE COURSE DISASTER
EVENT TO CRITICAL TO OF ACTION AND
OUTCOME OUTCOME

LIKELIHOOD

IMPROBABLE LOW MEDIUM MEDIUM HIGH

RISK IS -1- -4- -6- - 10 -

UNLIKELY TO
OCCUR

POSSIBLE LOW MEDIUM HIGH EXTREME

RISK WILL -2- - 5- -8- - 11 -

LIKELY TO
OCCUR

PROBABLE MEDIUM HIGH HIGH EXTREME

RISK WILL -3- -7- -9- - 12 -

OCCUR

LOW MEDIUM HIGH EXTREME

0-ACCEPTABLE 1- ALARP (As 2- GENERALLY 3-INTOLERABLE

Low as Reasonably UNACCEPTABLE
RISK RATING Practicable)
KEY

OKAY TO TAKE SEEK SUPPORT PLACE EVENT ON

PROCEED MITIGATION HOLD
EFFORT
Risk Register
RISK LIKELIHOOD
RISK MITIGATING
ID RISK DESCRIPTION RESPONSIBILITY OF THE RISK SEVERITY IF THE
RATING ACTION
NO. OCCURING RISK OCCURS
-Provide great
customer service.
The extent to
which rival -Offer more
Intense companies exert CEO and affordable pricing
1 Competition
POSSIBLE TOLERABLE HIGH
pressure on one Management
another. -Offer Good
(Lazada, Quality & High
WalterMart. etc.) Value product.

-Catering needs of
customers.

A business that -Target new

experiences markets to find new
higher sales customers and
during certain strengthen the
Seasonality of seasons may CEO and existing customer
2 POSSIBLE TOLERABLE MEDIUM
Business appear to make Management support system
significant gains
during peak -Create an event &
seasons and content marketing
significant calendar for
losses during industry
off-peak season
 - Diversifying
business portfolio.
Unfavorable
regulations and - Come up with a
laws could plan on how to use
diminish the the changes of laws
demand for our and regulations for
products and e-commerce
Government services and businesses to your
3 Board and CEO POSSIBLE TOLERABLE Low
Regulation increase our cost advantage.
of doing
business - Come up with a
(taxation, plan on how to use
inflation rates, the changes of laws
currency and regulations for
exchange risk.) e-commerce
businesses to your
advantage.
The product - Swiftly respond to
never arrives, chargebacks notice.
and the amount
has been - Should ensure full
charged from authorization for an
the customers' order before
Customer account. shipping
4 Disputes & Sometimes the Public Relations POSSIBLE TOLERABLE MEDIUM
Chargebacks customer has - Not charge the
been charged customers until
twice, and the items are shipped
product
description does - Have a clear
not match the Refund policy and
real product. information
 - Always be polite
when you are
talking to your
customers

- Respond to
customer
Rude and
complaints quickly
Customer unprofessional
5 Public Relations POSSIBLE TOLERABLE MEDIUM and gracefully
Service customer service
agents.
- Focus on
exceeding the
expectations of
your clients

- Find the right

keywords to
promote products
Low SEO
ranking means -Have an effective
low traffic to social media
Website SEO strategy
your website, IT Specialists and
6 Ranking & POSSIBLE TOLERABLE MEDIUM
which ultimately Marketing
Marketing - Perform
results in a
smaller sales competitor research
number. and analysis like
which keyword are
they targeting

7 Online Online security IT Specialists POSSIBLE UNDESIRABLE HIGH -Have a multi-

Security risks can include layered network
 security

-Monitor
transactions from
ordering to delivery

- Get strong
passwords from the
phishing, users
website hacking,
and unprotected - Make sure initiate
web services. and end your
transactions with
SSL Certification

- Purge old records

from the database
and keep a
minimum amount
of data.
8 Credit Card Suspicious IT Specialists POSSIBLE UNDESIRABLE HIGH - SSL Certificates
Scams transactions and are important for
stolen credit transactions
card information
- Use Secure
Sockets Layers
authentication for
protection of data.

-Authenticating
identity and
encrypts the data
which saves the
 data from being
stolen.

- PCI complaint
because it protects
the data of a credit
cardholder and
maintains the
firewall.
- Should use two-
factor or
multifactor
authentication
methods.

Have weak and - Adds an extra

Weak layer of security
extremely basic
9 Authenticatio IT Specialists POSSIBLE UNDESIRABLE HIGH and can ask for a
authentication
n Methods verification code
methods.
other than ID and
passwords.
 - Using inventory
management
software that can
automatically
updates across all
your sales channels

- Ensure proper
order tracking
customers
Can run out of
- Have a reliable
stocks while
professional drop
orders are
shipping service
coming in, Inventory
Product
product Manager and
10 Warehousing POSSIBLE TOLERABLE MEDIUM -Cross check
shipment might Drop Shipping
& Logistics whether the right
be delayed, or a Sellers
delivery details are
parcel could be
entered on the
delivered to the
package
wrong recipient.
-If package was
received by a
wrong recipient.
Check for the
recipients sign or
address and ensure
it is delivered to the
right location,
otherwise process
the refund.
III. Conclusion
E-commerce business like Shoppee has given a lot of exposure and access to a bigger audience
through the Internet. The world now is coming closer from connecting with one person sitting at
the other end of the world to doing business deals; everything has been made fast and quick. The
vast internet success has made life easier for the average person by providing many options.
What is more, it has also made our shopping experience more effortless and hustle free. We can
now get practically everything from online shopping. Online shopping convenience changes the
shopping experience for everyone. The shopper can now do more shopping with lots of options
available. The whole shopping experience has become more convenient. The thing with e-
commerce is that it is not just maximizing but also changing. Today the consumer faces a maze
of different online choices that were not available or even imaginable some years ago. However,
it has also led Shoppee to a blowout of severe security threats and online threats.
In summary, the inevitable security threats to Shoppee business include Online security breaches,
Low SEO ranking, Credit card scams, and Weak authentication methods, which make the
customer feel unprotected from their privacy. To avoid this Shoppee needs to implement the best
and latest data security and anti-hacking measures, specifically in the checkout process, because
it is this part of the website where users provide their information. Obtain certifications,
accreditations, and badges and put them on the website to make the customers feel safe buying.
Cyber-security is very important to succeed in the E-commerce business. Security threats are
getting better and hard to fix, which means every e-commerce needs a dedicated team that will
provide protection and stays updated with security issues to the websites. In addition to that,
Shoppee needs to strengthen its public relations to avoid Customer Disputes & Chargebacks, and
Poor customer service. Shoppee needs to have clear and convenient return and refund policies, so
customers don't hesitate to complete the website's checkout process.
Aside from security threats, E-commerce businesses are rapidly evolving and intensely
competitive. Shoppee has many competitors in different industries, including retail, e-commerce
services, digital content, digital media devices, and web services. Many shoppee current and
potential competitors have more significant resources, longer histories, more customers, and
greater brand recognition. They may secure better terms, have more aggressive pricing, and
devote more resources to technology and marketing. Also, New and enhanced technologies,
including search, web services, and digital, may increase shoppee competition. Internet helps
competitive entry and comparison shopping, and increased competition may reduce Shoppee
sales and profits. Shoppee seasonality of income will have a significant risk in the business. If
shoppe does not stock or restock popular products in sufficient amounts such that they fail to
meet customer demand, it will significantly affect shoppe revenue and future growth. If shoppee
overstock products, they may be required to take significant inventory markdowns or write-offs,
which could reduce profitability. shoppee may experience an increase in shipping cost due to
split-shipments and extra long-zone deliveries necessary to ensure delay free delivery for the
holiday season.
Lastly, Shoppee is subject to general business regulations and laws. Regulations and laws
exclusively governing the Internet, e-commerce, and electronic devices. Current and future laws
and regulations may delay shoppee growth. These regulations and laws may cover data
protection, taxation, privacy, pricing, copyrights, distribution, mobile communications,
electronic device certification, electronic waste, electronic contracts and other communications,
consumer protection, web services, the provision of online payment services, the design and
operation of websites, and the characteristics and quality of products and services. It is not sure
how existing laws governing property ownership, and personal privacy can be applied to the
Internet and e-commerce. Unfavorable regulations and laws could lessen the demand for shoppee
products and services and increase our business costs.

REFERENCES:
[ CITATION Jin20 \l 1033 ] https://www.getastra.com/blog/knowledge-base/ecommerce-security-
threats/
[ CITATION int19 \l 1033 ] https://intelicle.com/7-risks-of-e-commerce-business/

[ CITATION AMA10 \l 1033 ]

https://www.sec.gov/Archives/edgar/data/1018724/000119312511016253/d10k.htm#tx117006_2