Please do explain what risk you're thinking of, as anyone smart enough to write their own SaaS would not put resources in the web server's file system tree? You stick your db file in an normal secure location outside the server's root, chmodded appropriately so that it suffers the exact same risks as any other file on the OS. It's no more or less risky than /etc/shadow, while being considerably easier to work with (and less failure-prone for light db work) than an independently running database service.
The risk is as I had written previously that it takes some effort to move away from a db to another when the need arises when I see no benefit in choosing SQLite in the beginning.
I'm not a professional db engineer but one point is that there doesn't seem to be a way to create functions in SQLite which would mean creating triggers on various tables can cause excessive amount of duplicate code.
If I rely on PostgreSQL, I feel covered for my use case for web apps but once you hit some little gotchas in SQLite, you may regret about saving 10 minutes (install db and set up a password) for nothing.
That's not a risk, that's just an inefficiency further down the line (migrating data from sqlite to a "real" database can indeed be quite a chore, but far less so if you formalized your schema and constraints beforehand, so that a migration mostly involves exporting to SQL, rewriting where needed, and then importing into whatever dbms you end up using later on in the lifetime of your project).
When we're talking about risks, think security exploits: how is sqlite3 more likely to get your data leaked, or flat out copied in its entirety, compared to using a mysql/postgres/etc.
Inefficiency or not, if you start down the path of SQLite, you need to invest good amount of time refactoring into another DB if you feel like migrating away.
When I realized SQLite would store any type of data in any kind of column type, it was obvious SQLite is different from others. They only added strict types about a year ago but scared me enough not to use it.
And how is SQLite any less secure? You can flat out copy its entirety using pg_dumpall. I'm not talking about security.
While that's an unfortunate discovery, I do need to point out that that's a problem of your own making, not SQLite's fault. SQLite is very clear on what you can expect, with dynamic typing being one of the main differences between it and "regular SQL" databases.
Yes, plenty of folks just go for SQLite blindly, but the consequences of that aren't SQLite's doing: if you take the time to read through https://www.sqlite.org/features.html because you want to know what it can actually do, you'll almost certainly click through to https://www.sqlite.org/omitted.html because you'll want to know what it doesn't do, and then you'll see the "See also the Quirks, Caveats, and Gotchas of SQLite." link and you're going to follow it an read through https://www.sqlite.org/quirks.html because those sound pretty important to know about before you commit to using something that is going to be your application/service data store for the foreseeable future.
your app has full access to the SQLite file. MySQL/PostgreSQL have users and permissions. Security is about layers, and SQLite is removing one layer of security. You can, for example, put DELETEs or access to certain tables on a separate user that your web app has no access to. With SQLite, if your app gets hacked then they can do anything with the whole DB they want to. In addition, with a separate DB process you get audit logs. If someone hacks your SQLite app they may have access for months before you realize it, if you ever do. Especially if they are doing something subtle like UPDATEs on specific tables/fields that may go unnoticed but provide the hacker some benefit. This is why you can't simply rely on the idea of using a backup. That's only going to help if the hacker totally trashes your DB.
With a separate DB you may have a hope of detecting when someone hacked your app. But without that firewall, the question becomes: how much of the data in my SQLite can now be trusted? If you don't know what backup is safe to restore, then you can't trust any of it.
Again, this is about layers. Not saying MySQL/Postgres will save you. But they can increase the odds.
If your server or API can be exploited, it doesn't matter whether there's an auth layer in between. Your SQL server runs as a service to connect to, your sqlite3 file is a file that you need access to. They're the same kind of layer: you need to break through the server's security to ever get to them directly, and if your app gets hacked such that the hackers gain file system access, then:
1. You're fucked. The end. It doesn't matter whether you were using mysql, postgres, or sqlite3, or S3, or Redis, or any other server your app was connecting to: they can just look at your environment vars.
That's not going to happen "because you're using Sqlite3", that's going to happen because you used some obscure server software, or worse, rolled your own.
People really do seem to put too much faith into "it has a username and password, it's more secure". It's not: if someone has access to your actual server, they have access to everything your server has access to. Sqlite3 is no more or less secure than a dbms daemon (or remote) in that sense.
With sqlite your server, api or application can be hacked. The most common and likely hack would be somewhere in your application. It really doesn't make sense to use sqlite here.
Setup a separate database server and use it for all of your projects. That one hour pays off each and every project.