ICT Operational Risk Management (ORM) and Performances of a Financial SME

A. Bayaga, S. Flowerday, R. Piderit

Abstract


This paper investigates the relationship between ICT
operational risk management (ORM) and the performance of an SME. To
achieve this, this research investigated five specific elements, namely:
the principal causes of ICT ORM failure in an SME; change management
requirements; characteristic(s) of business information; challenges
posed by new ORM solutions; and evaluation models for understanding the
value of ICT ORM in SMEs. Following a literature review, an electronic
survey consisting of closed ended questions was developed. This was
distributed at a financial company in the Eastern Cape and 107 responses
were gathered. Factor analysis was used as a data reduction technique to
reduce the large number of related variables to a more manageable
number. The empirical evidence presented indicated that a significant
proportion of the aforementioned variables have impact on the
performance of an SME. Therefore, this paper indicates that there is a
strategic impact of ICT ORM on SME performance. Keywords: SME
Performance, Operational Risk Management, Information Communication
Technology

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DOI: https://doi.org/10.30541/v52i2pp.127-138

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