Exploration of Factors Affecting IT as a Risk Management Tool A Case of NWPG Finance Department

The study investigated the role of Information Technology as a risk management tool in the Department of Finance, North West Provincial Government (NWPG) of South Africa. The department's strategy is to provide good services to its customers and creditors. There have been several issues of money laundering, and misappropriation of funds. This has been attributed to the failure of NWPG to enlist IT as a risk management tool in their strategic objectives. The study used questionnaires that were distributed to employees and a return rate of 72% was achieved. Using quantitative research approach, and descriptive and exploratory statistics techniques, it was noted that the department has feasible resources to manage its risk. The challenge however is that there is neither no measures in place to reduce the IT risk nor that employees have not been made aware about such risk. Nonetheless, the department has other security controls available. Factor analysis results revealed 15 items being explained by two factors. It is recommended that employees should be made aware of the risk control measures, reporting procedures and risks in their department. It was uncertain if managers in this department realise the role IT plays in mitigating procurement risks.