(a) CRM

The purpose of customer relationship management (CRM) is to help companies to better understand the behaviour of their customers and subsequently modify their marketing operations to service customers in the best way possible. This will include:

Finding out more about the purchasing habits and preferences of customers.

Profiling the characteristics and needs of individual customers and groups of customers more effectively.

Changing the way the company operates, in order to improve its service to customers and the marketing of its products.

(b) Security

Deliberate corruption. All computer systems are exposed to risk from viruses. Hackers may also gain entry to a system and deliberately alter or delete software or data.

The loss of key personnel with specialist knowledge about a system. For example, the risk that a senior systems analyst will leave his job in the middle of developing a complex new system.

The exposure of system data to unauthorised users. For example, hackers and industrial espionage.

The software might have been written with mistakes in it, so that it fails to process all the data properly.

Human error. Individuals make mistakes. They may key incorrect data into a system. In some cases, they may wipe out records, or even an entire file, by mistake. Human error is also a common cause of lapses in system security – leaving computer terminals unattended is just one example.

Technical error. Technical errors in the computer hardware, the software or the communications links can result in the loss or corruption of data.

Natural disasters. Some computer systems may be exposed to risks of natural disasters, such as damage from hurricanes, floods or earthquakes.

Sabotage/criminal damage. Systems are also exposed to risk from criminal damage, or simply theft. Risks from terrorist attack are well publicised. Losses from theft and malicious damage are much more common.

The software should contain controls as a check against errors in processing, such as human errors with the input of data from keyboard and mouse. The software might not contain enough in-built controls against the risk of input error and other processing errors.