Towards a Policy Framework for E-Commerce Risk Management: A Case of South African Online Shopping
Tshepo Alex Malapane, Nkanyiso K. Ndlovu · 2024
In the rapidly growing landscape of e-commerce within South Africa, propelled by factors such as increased mobile device usage and the utilization of social media platforms for marketing and sales, the need for a robust Risk Management Framework (RMF) has become apparent. Adopting a mixed research approach, the study identifies and analyses various perceived risks associated with online transactions, covering financial, operational, cybersecurity, compliance, and reputational aspects. Drawing on insights from financial risk management, strategic management, and information security, the proposed framework adopts a multidisciplinary approach. The study underscores the significance of ongoing research to continuously refine the framework in response to emerging risks and technological advancements. Key findings highlight the diverse array of risks faced by the South African e-commerce sector, including financial fraud, operational inefficiencies, cybersecurity threats, compliance challenges, and reputational concerns. These findings underscore the need for a holistic risk management strategy to safeguard the interests of both businesses and consumers. The study's recommendations aim to fortify the e-commerce sector against these risks, fostering sustainable growth and bolstering consumer confidence. It calls for ongoing research to monitor the long-term impacts of risk management strategies on consumer behavior and market expansion. In conclusion, the study provides a tailored framework for e-commerce risk management in South Africa, informed by extensive research and analysis.