oa Journal for New Generation Sciences - The role of information technology in the risk management of businesses in South Africa

Volume 16 Number 2
  • ISSN : 1684-4998



Information Technology is a dynamic and constantly evolving field which has dramatically changed the way in which businesses operate. Organisations now have to ensure that information technology is incorporated into their risk management processes and the strategies to mitigate those risks.

This study investigated the role of information technology in risk management processes, focusing on the type of information technology risks and threats that affect organisations. An empirical study of the integrated reports of the top 40 companies listed on the Johannesburg Securities Exchange was conducted to investigate the information technology risk management disclosure practices. The study was completed in 2016, before the King IV Code of Corporate Governance for South Africa became effective and accordingly, focused only on the King III principles of information technology governance and risk management.

The study found that companies are mitigating information technology risks and have included information technology into their risk management processes. The results also revealed that awareness of information technology risk may be industry-driven, as companies operating in information technology environments were more likely to be exposed to information technology risk.

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