Comprehensive Guide to High Risk NAICS Codes: Complete List

by Faisal Nadeem Feb 27, 2025

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Comprehensive Guide to High Risk NAICS Codes: Complete List

Finding one's way in the business environment can be challenging, particularly in comprehending risks. An essential detail is that NAICS codes play a significant role in market research and economic analysis. 2 Our guide simplifies the list of high-risk NAICS codes , assisting you in bypassing possible hazards. Prepare to expand your knowledge.

Key Takeaways

• NAICS codes sort businesses into groups to understand the economy. They started in 1997 and replaced SIC codes.
• High-risk NAICS codes can make it hard for businesses to get loans or insurance. Industries like construction, hospitality, and automotive sales often face higher costs.
• Businesses with high-risk NAICS codes should plan carefully. Diversifying operations and getting expert advice can lower risks.
• Businesses can have more than one NAICS code. This could help them get better loan options and insurance rates.
• NAICS codes update every five years. The latest set is from 2022, with the next review in 2027. Keeping up with these changes is important for businesses to make smart choices.

What Are NAICS Codes?

NAICS codes stand for North American Industry Classification System. They group businesses into categories based on what they do.

Definition and PurposeNAICS codes stand for how we group businesses. They show what a company does. This system started in 1997, taking over from an older one called SIC. Its job is to help us understand the economy better.

We use it for reports by the government, studying markets, and seeing how different industries are doing.

The U.S. Census Bureau has a website where any business can find out its NAICS code. Knowing this code is key because it affects many things like loans and insurance.

NAICS codes organize businesses into categories for easier analysis of economic data.

Role in Business and Financial DecisionsNAICS codes help banks and credit bureaus decide if a business can get loans. These codes show what kind of business you run. Lenders look at them to understand the risk before giving money.

They see if your business matches their rules for size and type. This way, they make sure they lend money safely.

The Small Business Administration (SBA) also uses these codes. They set rules on which businesses count as small. This affects who can get special loans or join programs meant for small companies.

Credit scores, how much money a business makes, and how long it has been around are key too. These facts guide decisions on loans that help businesses grow or start new projects.

Identifying High-Risk NAICS Codes

To spot high-risk NAICS codes, you look at what makes a business likely to face financial trouble. Things like how much competition there is and the cost of insurance affect if a code is seen as high risk.

Criteria for Risk Classification

To classify business risk, experts look at how a company makes money and what dangers it may face. They use NAICS codes, which group businesses by their work type. A business in a high-risk code might deal with dangerous materials or have a high chance of accidents.

Every five years, experts review NAICS codes to keep them up to date.

Insurance companies and lenders pay close attention to these codes. They decide who gets loans or insurance based on the risk these codes show. High-risk industries often find it harder to get money or protection because they are seen as more likely to face problems. Influence on Financing and Insurance Options

High-risk NAICS codes make it hard for businesses to get loans and insurance. Banks and financial institutions look at these codes when they decide if a business can borrow money. If a business falls under a high-risk code, banks may think it's more likely to fail.

This means the business could get denied for loans or have to pay higher interest rates. Insurance companies also use NAICS codes to set premiums. Businesses in high-risk categories might have to pay more because they are seen as having a greater chance of making claims.

Choosing the right NAICS code is very important for getting funding and affordable insurance. A mistake in selecting an NAICS code can lead lenders and insurers to see your business wrongly, leading to loan rejections or costly premiums.

It's key for companies, especially those in industries like construction or restaurants with higher accident rates, to pick accurately their NAICS code from the start—setting them up better for financial success.

Comprehensive List of High-Risk NAICS Codes

For businesses in certain fields, knowing if they fall under high-risk NAICS codes is key. This list covers sectors like building projects to eateries, showing which areas face more challenges with finance and insurance.

Construction and Building Sectors

The construction sector, known by NAICS code 23, is a big part of the economy. It has over 1.5 million businesses. This includes those that build houses (2361) with around 512,674 businesses and those that work on buildings that are not homes (2362) with about 65,022 businesses.

There are also many companies focused on utility system construction (2371), adding up to 26,365.

Safety comes first in construction.

Workers deal with real dangers like falling or getting hurt by machinery every day. They must follow safety rules to keep everyone safe. Businesses in this sector can face high costs for insurance because of these risks. Keeping workers safe is a big job but very important for running a good business in construction and building sectors.

Hospitality Industry: Restaurants and Bars

The hospitality industry includes restaurants and bars. This sector falls under NAICS Code 72, which covers Accommodation and Food Services. There are about 928,815 businesses in this area. Full-service restaurants alone make up a large part, with approximately 380,648 establishments. Drinking places that serve alcoholic beverages account for around 76,471 businesses.

Special food services also play a role in the hospitality scene. This category has about 44,939 businesses, including caterers. These operations face unique challenges due to their high-risk nature. Insurance costs can be higher for these types of establishments as they deal with various safety hazards daily. Understanding these factors is vital for anyone looking to thrive in this industry.

Automotive Sales: Car Dealerships

Car dealerships face high risks. They fall under specific NAICS codes, like new car dealers (NAICS 441110) and used car dealers (NAICS 441120). These classifications matter because they can influence business credit and loan options.

For instance, lenders might view these businesses as risky due to market fluctuations.

Also, automotive parts retailers are classified under NAICS 441330. This variety in the automotive sales sector shows different levels of risk in financing and insurance costs.

Car dealerships often struggle with higher insurance premiums too. Understanding these codes is key for businesses seeking loans or lower rates on insurance policies.

Maintenance Services: Cleaning Services

Cleaning services fall under NAICS Code 561720. This code includes janitorial services, custodial work, and housekeeping tasks. Major companies like C&H Industrial Services Inc, ISS Holding Inc, and Terminix Company LLC provide these essential services.

They focus on tasks such as office cleaning and washroom sanitation.

These maintenance services play a vital role in many industries. They keep spaces clean and safe for customers and employees alike. Companies offering cleaning services often face high-risk classifications due to the nature of their work.

Issues can arise concerning financing options or insurance costs as a result of this classification. Professional Advisory: Consulting Services

Consulting services fall under NAICS code 541611. These services help businesses manage their operations and enhance efficiency. More than 2.5 million companies operate in the Professional, Scientific, and Technical Services sector .

They rely on advisors to improve strategies and solve problems.

Environmental consulting also plays a key role in this field with NAICS code 541620. Such consultants guide firms on sustainability practices and compliance with regulations. Businesses in this area need solid credit reports for financing options.

Lenders often view these services as high-risk due to market changes, which can influence loan acquisition and insurance costs.

NAICS and SIC Codes: A Comparative Analysis

NAICS and SIC codes serve different purposes. NAICS codes focus on modern industries, while SIC codes are older and less detailed. Each code has unique uses that can affect businesses in many ways.

Understanding these differences helps companies make better financial choices.

Key Differences and UsesNAICS codes and SIC codes serve to classify businesses. NAICS, introduced in 1997, uses six digits. In contrast, SIC codes are limited to four digits and were last updated in 1987. NAICS aligns with international standards while SIC focuses on the U.S. This makes NAICS more flexible and inclusive.

With over 350 new industries added, NAICS offers a clearer view of today's economy. Businesses use these codes for various reasons like loan applications or insurance needs. Understanding the differences helps companies assess risks better and make informed decisions about financing options or coverage plans in high-risk sectors.

Next, we will explore how high-risk NAICS codes affect business implications.

Relevance of NAICS for Risk AssessmentNAICS codes help assess risk by classifying businesses into specific industries. Each industry has its own level of risk. Lenders and insurance companies use these codes to decide on loans and coverage.

High-risk industries may face more challenges in obtaining business loans and can have higher insurance costs.

The Census Bureau recognizes 358 new industries within NAICS, including many service sectors. This detailed classification allows for better decision-making in lending and credit assessments.

Understanding the risks tied to different NAICS codes is essential for businesses looking to grow or find financing options that suit their needs.

Business Implications of High-Risk NAICS Codes

High-risk NAICS codes can make it harder to get loans. Banks and insurance companies see these businesses as greater risks, which may lead to higher costs and strict terms.

Loan Acquisition Challenges

Businesses with high-risk NAICS codes face challenges in getting loans. Lenders see these codes and often hesitate to offer financing. They worry about the creditworthiness of these businesses.

High-risk classifications influence both loan eligibility and terms.

Building a strong credit history is crucial for these companies. Offering collateral may help too. Lenders are more likely to approve loans if they feel secure about repayment. Without proper planning, obtaining funds can be difficult for businesses in high-risk areas like construction or hospitality.

Insurance Cost Implications

High-risk industries often face higher insurance costs. This is due to increased accident rates and potential liabilities in these sectors. For example, a construction company may pay more for coverage than a retail shop because of the dangers on job sites.

Insurance companies price their policies based on risk levels.

Investing in safety programs can help reduce premiums over time. Companies that show they follow regulations and maintain quality equipment are seen as less risky by insurers. Keeping adequate insurance is crucial to protect against losses and financial strain in high-risk areas like automotive sales or hospitality industry operations.

Understanding these implications will help businesses make better financial choices moving forward. Constraints on Expansion and Growth

High-risk NAICS codes create barriers for business growth. These classifications can lead to loan denials. Banks see high-risk industries as uncertain. This makes it tough to get small business financing.

As a result, companies may struggle to expand their operations.

Also, businesses with high-risk codes face higher insurance costs. This eats into profits and limits funds available for growth projects. High-risk sectors are more likely to attract IRS audits too. The stress of these audits can further hinder progress and stability within the company.

Strategies to Reduce Risks in High-Risk Industries

To lower risks in high-risk industries, careful planning is key. Businesses can also improve security by diversifying their operations and seeking expert financial advice.

Planning and Strategic Development

Planning and strategic development are vital for businesses in high-risk industries. These processes help companies adjust to changing market conditions. Scenario planning enables them to consider different future risks.

This preparation allows firms to respond effectively to challenges.

Firms should analyze their operations regularly. Understanding interdependencies among various risks can improve resilience. Strategic risk and futures methods can benefit long-term planning.

Businesses gain clarity about potential problems, thus adopting better practices for success in competitive fields like real estate or automotive sales. Diversification of Business OperationsDiversification of business operations helps firms reduce risks. It allows them to explore new markets, products, or services. This strategy can lead to better financial performance.

A study shows that combining exploration and exploitation boosts success for resource-scarce companies.

Businesses in high-risk industries should consider this approach. By offering different services, they can reach more customers and stabilize income. For example, automotive dealers might also sell household appliances like refrigerators or water heaters.

This way, they lessen reliance on one market and improve overall growth potential. Specialized Financial Guidance

Businesses in high-risk NAICS codes often face unique challenges. Specialized financial guidance can help them navigate these issues. Experts can provide insight into loan acquisition and insurance costs.

They understand how industries like automotive sales or construction work. Their advice is vital for managing risk effectively.

Firms may benefit from working with investment firms or credit reporting agencies to assess their needs. This support helps businesses make informed choices about funding and insurance options.

Accessing the right resources can lead to better growth strategies and lower risks in tough sectors. Using data append services from business intelligence services also aids in understanding market trends better.

Conclusion

High-risk NAICS codes play a key role in business. They affect loans, insurance, and growth. Understanding these codes helps companies navigate challenges. Use this guide to identify high-risk sectors and improve your strategy.

Make informed decisions for better success in your industry.

FAQs

1. What are high-risk NAICS codes?

High-risk NAICS (North American Industry Classification System) codes are classifications for industries deemed risky by the Office of Management and Budget, Department of Financial Protection & Innovation, and other business credit bureaus. Industries like real estate investing or consumer lending might fall under these categories.

2. Why is it important to understand high-risk NAICS codes in relation to credit cards?

Understanding high-risk NAICS codes can help businesses navigate card payments effectively. Businesses in sectors with these classifications may experience challenges when processing debit card or credit card transactions due to underwriting concerns from the insurance company.

3. How does social media play a role in understanding high-risk NAICS codes?

Social media influencers on platforms like Facebook, Twitter, and LinkedIn often share information about industry best practices regarding standard industrial classification systems such as NAICS codes. This can be an invaluable resource for businesses navigating this complex area.

4. Can you provide examples of industries that might have a high risk NAICS code?

Industries with a higher risk profile could include automobile sales including sport utility vehicles, electronic cigarette vendors, self-storage facilities, real estate agents dealing in rental properties, general merchandise supercenters and c-stores (convenience stores).

5. Are there any additional resources where I can find more about high risk NAICS Codes?

Yes! The Bureau of the Census provides comprehensive lists and details on all existing NACIS Codes while software solutions also exist that help businesses manage their tax returns related to these classifications according to Internal Revenue Service regulations.

6. Does e-commerce come under High Risk Naics Code?

While not all online activities are considered risky,the internet-based crowdfunding platform operations or handling private information over web portals could potentially fall into higher risk categories depending upon specific factors evaluated by regulatory bodies.

Key Takeaways

• NAICS codes sort businesses into groups to understand the economy. They started in 1997 and replaced SIC codes.
• High-risk NAICS codes can make it hard for businesses to get loans or insurance. Industries like construction, hospitality, and automotive sales often face higher costs.
• Businesses with high-risk NAICS codes should plan carefully. Diversifying operations and getting expert advice can lower risks.
• Businesses can have more than one NAICS code. This could help them get better loan options and insurance rates.
• NAICS codes update every five years. The latest set is from 2022, with the next review in 2027. Keeping up with these changes is important for businesses to make smart choices.

What Are NAICS Codes?

NAICS codes stand for North American Industry Classification System. They group businesses into categories based on what they do.

Definition and PurposeNAICS codes stand for how we group businesses. They show what a company does. This system started in 1997, taking over from an older one called SIC. Its job is to help us understand the economy better.

We use it for reports by the government, studying markets, and seeing how different industries are doing.

The U.S. Census Bureau has a website where any business can find out its NAICS code. Knowing this code is key because it affects many things like loans and insurance.

NAICS codes organize businesses into categories for easier analysis of economic data.

Role in Business and Financial DecisionsNAICS codes help banks and credit bureaus decide if a business can get loans. These codes show what kind of business you run. Lenders look at them to understand the risk before giving money.

They see if your business matches their rules for size and type. This way, they make sure they lend money safely.

The Small Business Administration (SBA) also uses these codes. They set rules on which businesses count as small. This affects who can get special loans or join programs meant for small companies.

Credit scores, how much money a business makes, and how long it has been around are key too. These facts guide decisions on loans that help businesses grow or start new projects.

Identifying High-Risk NAICS Codes

To spot high-risk NAICS codes, you look at what makes a business likely to face financial trouble. Things like how much competition there is and the cost of insurance affect if a code is seen as high risk.

Criteria for Risk Classification

To classify business risk, experts look at how a company makes money and what dangers it may face. They use NAICS codes, which group businesses by their work type. A business in a high-risk code might deal with dangerous materials or have a high chance of accidents.

Every five years, experts review NAICS codes to keep them up to date.

Insurance companies and lenders pay close attention to these codes. They decide who gets loans or insurance based on the risk these codes show. High-risk industries often find it harder to get money or protection because they are seen as more likely to face problems. Influence on Financing and Insurance Options

High-risk NAICS codes make it hard for businesses to get loans and insurance. Banks and financial institutions look at these codes when they decide if a business can borrow money. If a business falls under a high-risk code, banks may think it's more likely to fail.

This means the business could get denied for loans or have to pay higher interest rates. Insurance companies also use NAICS codes to set premiums. Businesses in high-risk categories might have to pay more because they are seen as having a greater chance of making claims.

Choosing the right NAICS code is very important for getting funding and affordable insurance. A mistake in selecting an NAICS code can lead lenders and insurers to see your business wrongly, leading to loan rejections or costly premiums.

It's key for companies, especially those in industries like construction or restaurants with higher accident rates, to pick accurately their NAICS code from the start—setting them up better for financial success.

Comprehensive List of High-Risk NAICS Codes

For businesses in certain fields, knowing if they fall under high-risk NAICS codes is key. This list covers sectors like building projects to eateries, showing which areas face more challenges with finance and insurance.

Construction and Building Sectors

The construction sector, known by NAICS code 23, is a big part of the economy. It has over 1.5 million businesses. This includes those that build houses (2361) with around 512,674 businesses and those that work on buildings that are not homes (2362) with about 65,022 businesses.

There are also many companies focused on utility system construction (2371), adding up to 26,365.

Safety comes first in construction.

Workers deal with real dangers like falling or getting hurt by machinery every day. They must follow safety rules to keep everyone safe. Businesses in this sector can face high costs for insurance because of these risks. Keeping workers safe is a big job but very important for running a good business in construction and building sectors.

Hospitality Industry: Restaurants and Bars

The hospitality industry includes restaurants and bars. This sector falls under NAICS Code 72, which covers Accommodation and Food Services. There are about 928,815 businesses in this area. Full-service restaurants alone make up a large part, with approximately 380,648 establishments. Drinking places that serve alcoholic beverages account for around 76,471 businesses.

Special food services also play a role in the hospitality scene. This category has about 44,939 businesses, including caterers. These operations face unique challenges due to their high-risk nature. Insurance costs can be higher for these types of establishments as they deal with various safety hazards daily. Understanding these factors is vital for anyone looking to thrive in this industry.

Automotive Sales: Car Dealerships

Car dealerships face high risks. They fall under specific NAICS codes, like new car dealers (NAICS 441110) and used car dealers (NAICS 441120). These classifications matter because they can influence business credit and loan options.

For instance, lenders might view these businesses as risky due to market fluctuations.

Also, automotive parts retailers are classified under NAICS 441330. This variety in the automotive sales sector shows different levels of risk in financing and insurance costs.

Car dealerships often struggle with higher insurance premiums too. Understanding these codes is key for businesses seeking loans or lower rates on insurance policies.

Maintenance Services: Cleaning Services

Cleaning services fall under NAICS Code 561720. This code includes janitorial services, custodial work, and housekeeping tasks. Major companies like C&H Industrial Services Inc, ISS Holding Inc, and Terminix Company LLC provide these essential services.

They focus on tasks such as office cleaning and washroom sanitation.

These maintenance services play a vital role in many industries. They keep spaces clean and safe for customers and employees alike. Companies offering cleaning services often face high-risk classifications due to the nature of their work.

Issues can arise concerning financing options or insurance costs as a result of this classification. Professional Advisory: Consulting Services

Consulting services fall under NAICS code 541611. These services help businesses manage their operations and enhance efficiency. More than 2.5 million companies operate in the Professional, Scientific, and Technical Services sector.

They rely on advisors to improve strategies and solve problems.

Environmental consulting also plays a key role in this field with NAICS code 541620. Such consultants guide firms on sustainability practices and compliance with regulations. Businesses in this area need solid credit reports for financing options.

Lenders often view these services as high-risk due to market changes, which can influence loan acquisition and insurance costs.

NAICS and SIC Codes: A Comparative Analysis

NAICS and SIC codes serve different purposes. NAICS codes focus on modern industries, while SIC codes are older and less detailed. Each code has unique uses that can affect businesses in many ways.

Understanding these differences helps companies make better financial choices.

Key Differences and UsesNAICS codes and SIC codes serve to classify businesses. NAICS, introduced in 1997, uses six digits. In contrast, SIC codes are limited to four digits and were last updated in 1987.NAICS aligns with international standards while SIC focuses on the U.S. This makes NAICS more flexible and inclusive.

With over 350 new industries added, NAICS offers a clearer view of today's economy. Businesses use these codes for various reasons like loan applications or insurance needs. Understanding the differences helps companies assess risks better and make informed decisions about financing options or coverage plans in high-risk sectors.

Next, we will explore how high-risk NAICS codes affect business implications.

Relevance of NAICS for Risk AssessmentNAICS codes help assess risk by classifying businesses into specific industries. Each industry has its own level of risk. Lenders and insurance companies use these codes to decide on loans and coverage.

High-risk industries may face more challenges in obtaining business loans and can have higher insurance costs.

The Census Bureau recognizes 358 new industries within NAICS, including many service sectors. This detailed classification allows for better decision-making in lending and credit assessments.

Understanding the risks tied to different NAICS codes is essential for businesses looking to grow or find financing options that suit their needs.

Business Implications of High-Risk NAICS Codes

High-risk NAICS codes can make it harder to get loans. Banks and insurance companies see these businesses as greater risks, which may lead to higher costs and strict terms.

Loan Acquisition Challenges

Businesses with high-risk NAICS codes face challenges in getting loans. Lenders see these codes and often hesitate to offer financing. They worry about the creditworthiness of these businesses.

High-risk classifications influence both loan eligibility and terms.

Building a strong credit history is crucial for these companies. Offering collateral may help too. Lenders are more likely to approve loans if they feel secure about repayment. Without proper planning, obtaining funds can be difficult for businesses in high-risk areas like construction or hospitality.

Insurance Cost Implications

High-risk industries often face higher insurance costs. This is due to increased accident rates and potential liabilities in these sectors. For example, a construction company may pay more for coverage than a retail shop because of the dangers on job sites.

Insurance companies price their policies based on risk levels.

Investing in safety programs can help reduce premiums over time. Companies that show they follow regulations and maintain quality equipment are seen as less risky by insurers. Keeping adequate insurance is crucial to protect against losses and financial strain in high-risk areas like automotive sales or hospitality industry operations.

Understanding these implications will help businesses make better financial choices moving forward. Constraints on Expansion and Growth

High-risk NAICS codes create barriers for business growth. These classifications can lead to loan denials. Banks see high-risk industries as uncertain. This makes it tough to get small business financing.

As a result, companies may struggle to expand their operations.

Also, businesses with high-risk codes face higher insurance costs. This eats into profits and limits funds available for growth projects. High-risk sectors are more likely to attract IRS audits too. The stress of these audits can further hinder progress and stability within the company.

Strategies to Reduce Risks in High-Risk Industries

To lower risks in high-risk industries, careful planning is key. Businesses can also improve security by diversifying their operations and seeking expert financial advice.

Planning and Strategic Development

Planning and strategic development are vital for businesses in high-risk industries. These processes help companies adjust to changing market conditions. Scenario planning enables them to consider different future risks.

This preparation allows firms to respond effectively to challenges.

Firms should analyze their operations regularly. Understanding interdependencies among various risks can improve resilience. Strategic risk and futures methods can benefit long-term planning.

Businesses gain clarity about potential problems, thus adopting better practices for success in competitive fields like real estate or automotive sales.Diversification of Business OperationsDiversification of business operations helps firms reduce risks. It allows them to explore new markets, products, or services. This strategy can lead to better financial performance.

A study shows that combining exploration and exploitation boosts success for resource-scarce companies.

Businesses in high-risk industries should consider this approach. By offering different services, they can reach more customers and stabilize income. For example, automotive dealers might also sell household appliances like refrigerators or water heaters.

This way, they lessen reliance on one market and improve overall growth potential. Specialized Financial Guidance

Businesses in high-risk NAICS codes often face unique challenges. Specialized financial guidance can help them navigate these issues. Experts can provide insight into loan acquisition and insurance costs.

They understand how industries like automotive sales or construction work. Their advice is vital for managing risk effectively.

Firms may benefit from working with investment firms or credit reporting agencies to assess their needs. This support helps businesses make informed choices about funding and insurance options.

Accessing the right resources can lead to better growth strategies and lower risks in tough sectors. Using data append services from business intelligence services also aids in understanding market trends better.

Conclusion

High-risk NAICS codes play a key role in business. They affect loans, insurance, and growth. Understanding these codes helps companies navigate challenges. Use this guide to identify high-risk sectors and improve your strategy.

Make informed decisions for better success in your industry.

FAQs

1. What are high-risk NAICS codes?

High-risk NAICS (North American Industry Classification System) codes are classifications for industries deemed risky by the Office of Management and Budget, Department of Financial Protection & Innovation, and other business credit bureaus. Industries like real estate investing or consumer lending might fall under these categories.

2. Why is it important to understand high-risk NAICS codes in relation to credit cards?

Understanding high-risk NAICS codes can help businesses navigate card payments effectively. Businesses in sectors with these classifications may experience challenges when processing debit card or credit card transactions due to underwriting concerns from the insurance company.

3. How does social media play a role in understanding high-risk NAICS codes?

Social media influencers on platforms like Facebook, Twitter, and LinkedIn often share information about industry best practices regarding standard industrial classification systems such as NAICS codes. This can be an invaluable resource for businesses navigating this complex area.

4. Can you provide examples of industries that might have a high risk NAICS code?

Industries with a higher risk profile could include automobile sales including sport utility vehicles, electronic cigarette vendors, self-storage facilities, real estate agents dealing in rental properties, general merchandise supercenters and c-stores (convenience stores).

5. Are there any additional resources where I can find more about high risk NAICS Codes?

Yes! The Bureau of the Census provides comprehensive lists and details on all existing NACIS Codes while software solutions also exist that help businesses manage their tax returns related to these classifications according to Internal Revenue Service regulations.

6. Does e-commerce come under High Risk Naics Code?

While not all online activities are considered risky,the internet-based crowdfunding platform operations or handling private information over web portals could potentially fall into higher risk categories depending upon specific factors evaluated by regulatory bodies.