i)System Failure- When system goes down, users directly involved in accessing must wait until system is functional again. This might need long wait. Moreover, if system or application software fails, there might be permanent damage to database. It is very important, therefore to carefully evaluate all software that would have a direct effect on database to be certain that it is as free as mistakes as possible. If organization does not use database, it is not exposed to this risk, data and its software are distributed.

ii)Overhead Costs- database approach may require investment in both hardware and software. The hardware to run large DBMS has to be capable and will generally require more major memory and disk storage than simpler file-based system. Tape drivers for rapidly backing up database are also required. In adding, the DBMS itself might be quite costly.
DBMS may also require increase operating costs, because it requires new execution time. As in an application system using a DBMS will usually execute further slowly than system not using DBMS.

iii)Need for Sophisticated Personnel- database administration function requires skilled personnel who are capable of coordinating needs of different user groups, designing views, integrating those views into the single schema, establishing data revival procedures and fine tuning physical structure of database to meet acceptable performance criteria. There is threat involved in identification of personnel for the DBA, because if no person having requisite skills can be found, DBA function may not be properly performed. This can result in significant problems and even result in failure of database implementation.