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


  • A. Bayaga

    (University of Fort Hare, East London, South Africa.)

  • S. Flowerday

    (University of Fort Hare, East London, South Africa.)

  • R. Piderit

    (University of Fort Hare, East London, South Africa.)


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.

Suggested Citation

  • A. Bayaga & S. Flowerday & R. Piderit, 2013. "ICT Operational Risk Management (ORM) and Performances of a Financial SME," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 52(2), pages 127-138.
  • Handle: RePEc:pid:journl:v:52:y:2013:i:2:p:127-138

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