The future effect of e‐business on treasury and risk management systems and treasury management in South Africa

Abstract

‘Internet’ and ‘e‐business’ are words that have become part of today's business world. Invariably we hear of the effect thereof on the way we used to do things, due to the shift in paradigm from command and control to a more open globalised, multi‐polar world. Traditional ways of doing business are fast becoming redundant, as they are not able to cater for the needs of a business in cyberspace. New technology has helped create new risks and more volatility in the financial environment due to the ease with which information is spread. To benefit from the many new developments that allow more efficient marketing, improved productivity, lower costs, better service, and better access to financial resources, a rethink or re‐engineering of the way we used to do things will be necessary. Doing business in cyberspace means getting involved in an environment where all rules have not yet emerged and where breach of security is a very real threat. E‐business has important implications for South Africa as an emerging economy, as it creates the possibility for better access to various financial resources and eventual increased economic activity. This will affect all sectors in the economy and may lead to generally improved business infrastructure for the country as whole and for individual businesses, local authorities and government treasury departments. This is especially important for South Africa as a developing country as it may lead to a stronger economy, which, in turn, will make an important contribution to more rapid alleviation of poverty and more rapid reform in the long run.