A Review of the Role of Risk Management in Online Transactions: The Growing Issues of Network and System Security among Zambia’s Financial Institutions

Abstract

Abstract
 Purpose: The present study offers an all-encompassing analysis of the significance of risk management in the context of online transactions, with a particular emphasis on the escalating concerns regarding network and system security within the financial institutions of Zambia.
 Methodology: The research utilized a mixed-methods design, integrating an extensive review of relevant literature with an examination of primary data obtained through interviews with significant stakeholders.
 Findings: The results underscore the significance of proficient risk management tactics in alleviating the susceptibilities linked with internet-based transactions, specifically within the financial industry of Zambia. This discourse delves into monetary establishments' obstacles in securing their networks and systems and the possible consequences of insufficient risk management methodologies.
 Unique Contribution to Theory, Practice and Policy: The paper draws conclusions from the findings and suggests recommendations to improve risk management frameworks and bolster network and system security in online transactions in the financial sector of Zambia. The study was validated using a mixed-methods design, combining a comprehensive literature review with primary data obtained through interviews with significant stakeholders. This approach allowed the researchers to gather insights from existing knowledge and perspectives from relevant individuals involved in the financial institutions of Zambia. The exponential expansion of digital commerce has presented many obstacles for financial establishments operating in Zambia. One of contemporary society's foremost challenges is the increasingly salient problem of network and system security. It is because online transactions are frequently more susceptible to cyber threats than conventional offline transactions. Consequently, it is imperative for financial institutions operating in Zambia to undertake measures to enhance their risk management strategies to safeguard their clients and commercial operations. The effective management of risks associated with online transactions is a critical concern for financial institutions in Zambia. Robust network and system security measures are essential to mitigate potential threats and vulnerabilities.

Risk Management Strategies in Financial Institutions

“…The importance of this research lies in the vital role of financial institutions in the economy. As institutions that manage public funds, financial institutions have a big responsibility in mitigating risks that may occur (Siampondo, 2023).…”