PvP is incredibly low risk in this game. I arranged a PvP (note I said arranged as it's incredibly rare that anyone actually attacks you out of the blue, which is actually a complaint of mine but that's off topic) lost the battle and had my whole town and army torched.
Within an hour and a half, I had rebuilt a good sized army and repaired about 75-80% of the buildings in my town before I logged off. The next time I logged on, after a half hour of repairing and building units, it was like I was never attacked. If anything I would like to see higher consequences of losing PvP, but I understand I'm in the minority there.
--In Game: Erebus