Reductions in size and costs have increasingly made computer processing available to smaller businesses. The gains inherent in adopting the newer technology carry risks which are not familiar in the small business environment. In this article, the major types of computer liabilities are classified. The risks and hidden costs are identified. Advances in computer technology are found not to match the availability of risk coverage. These difficulties are found to be particularly acute with small business necessitating considerable effort in order to avoid unnecessary risks.
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