The shift to e-commerce and Internet-oriented business is increasing companies' exposure to risk on several fronts, including network security, company privacy, media liability and legal responsibilities within different regions, a conference was told yesterday.

It means firms must introduce risk management strategies as part of their business plans. This was the advice of Mr Marr Haack, general manager of international technology markets with St Pauls International, when he addressed the Irish Internet Association's inaugural annual conference in the RDS yesterday.

"The Internet is posing a huge threat to the global insurance industry through concerns about security and privacy. We need mechanisms within the e-commerce community to ensure we resolve problems quickly instead of getting bogged down in litigation," he said.

Mr Haack added risk management strategies are necessary to protect firms against computer systems fraud, denial of service attacks, telecommunications fraud, compromised identity and media liability or infringement issues.

The conference was sponsored by e-XPO Windows World which runs at the RDS until this evening. Other speakers included Dr Gerhard Huber, chief executive of online banking holding group, Enba, Mr Raomal Perera, chief executive officer of Network 365, and Mr Ivan McDonald, chief executive of Eware.

Dr Huber said e-commerce means competing organisations must now bid for business, and offer consumers the best price.

Mr Perera warned entrepreneurs with ambitious start-up plans that a Nasdaq flotation should not be the sole focus of their fundraising goals. He warned that it was a time-consuming process and there was a downside to becoming answerable to shareholders too early.

"What companies need is the active involvement of an investor such as a business angel or a venture capital company which will provide the funding for short to medium term growth," he said.

More than 10,000 business people registered to attend e-XPO.