What security risks are posed by connecting the internal LAN to the Internet and how can
they be addressed?
This question is ultimately connected to what is on your LAN and how valuable it is. If something is not valuable, there is not that much risk in exposing it. You have to take inventory of what is on your LAN and how important it is to protect. That will help you determine what needs to be done to protect it.
Whilst the use of a firewall will offer a high level of protection, what other issues need to
be considered as part of a company wide network security policy?
A firewall acts like an eggshell. It is a wall that just protects the outside of your network. If someone is able to get past that firewall, your internal network is all nice and soft and easy to exploit. Therefore, any security plan should include how to protect your network at various levels: Firewalls at the Internet boundary, Intrusion detection (inside and outside that firewall, so you know what attempts are being made and if any are successful), workstation firewalls, access controls, separation of function (preventing outsiders from accessing your SQL database might not prevent them from attacking it from your web server), virus filters and spam filters, encryption, VPNs, authentication systems.
You have to figure out how much of this your company needs by weighing their cost to the value of the information.
What specific issues does the company need to consider when using the Internet for e-coomerce?
On top of the above, you'll have to consider customer privacy issues and terms of use statements. There may be other Federal laws that dictate how user information is handled, like HIPAA if the users are healthcare customers.
Also, depending on the service level agreements you have with customers, you might have to consider network availability, data backup issues, and disaster recovery. Denial of service is a security issue that might cost major bucks and legal issues.