Title of presentation

Privacy concerns faced by Small Medium Micro Enterprises (“SMME”) in South Africa, in particular the gambling industry (bookmakers) ZUKO PHANDLE - AUDITOR: EASTERN CAPE GAMBLING BOARD 21 August 2019, 15th GRAF Conference, Boardwalk Casino, Port Elizabeth, South Africa

Contents Purpose Background Problem statement Cloud challenges or risks Addressing privacy concerns Conclusion

PURPOSE To share a proposed model that seeks to address privacy concerns by SMMEs, and ultimately to enhance their trust in cloud computing. To invite inputs from colleagues within the industry and other relevant stakeholders.

BACKGROUND The gambling industry like other industries, has evolved with time embracing the ever-changing technology. As a result its business models have shifted towards artificial, internet, electronic and or virtual gaming. Gambling industry uses best technologies for data storage & operation.

PROBLEM STATEMENT Privacy in cloud computing remains a serious concern for SMMEs. This is despite much work that has been done and progress made in mitigating the security concerns attached to cloud computing. As a result SMMEs remain reluctant to trust cloud computing. Privacy concerns in cloud computing, in particular in South Africa amongst other factors are attributed to a legislation gap arising from lack of appropriate regulation to address the specific privacy concerns in cloud computing.

Capacity Confidentiality Privacy Reliability Storage Security Segregation Trust Cloud challenges or risks

Addressing privacy concerns Research questions Privacy concerns Effects on trust Legislative framework shortcomings Underlying theory Observations Cloud benefits Regulation Proposed model Addressing privacy concerns

Research questions used How can SMMEs’ privacy concerns be addressed to improve their trust in the cloud? What are the privacy concerns facing SMMEs? How does lack of privacy affect trust in cloud computing? What are the shortcomings of the current legislation with respect to privacy in cloud computing?

Privacy Concerns Data storage Control of data (Lack) Multi-tenancy Integration with internal security Dependency Privacy Concerns identified by Tihomir, Darko, and Snjezana (2017)

The effects on trust by the lack of privacy in cloud computing Data Storage   Dependency   TRUST Privacy Concerns   Lack of control   Multi-tenancy   Integration with internal security   The effects on trust by the lack of privacy in cloud computing

Legislative Framework Shortcomings Lack – Privacy Compliance Framework (cloud) Legislation gap (POPIA, Gambling, et al) Delayed implementation of POPIA Legislative Framework Shortcomings

UNDERLYING THEORY applied Theory of Privacy Calculus: Is a “rational” theory that seeks to explain the attitudes, beliefs, intentions, and behaviours of IT consumers when the use of the IT includes the cost of a perceived privacy risk. An increase in perceived privacy risk decreases an individual's intent to disclose information, Keith, Thompson, Hale, Lowry and Greer (2013).

Figure 1: Privacy calculus model

observations Lucrative and attractive benefits vs risks (privacy concerns) and ramifications. Creation or enhancement of conducive environment for SMMEs to invest in cloud - creating a balance between the benefits and concerns. Legislation gap as a result of lack of appropriate regulation to address the specific privacy concerns in cloud computing.

Cloud Computing Benefits Less Capital Expenditure Highly Automated Virtual & Scalable Accessible & Secure Unlimited Storage Back-up & Data Recovery Lower Cost of Ownership Document Control Environmental Friendly Cloud Computing Benefits

Regulation POPI Act? Electronic Communications Act ICT Regulator? FICA Gambling Act Regulations Rules Conditions of Licence Regulation

Model to enhance the trust of SMMEs in cloud computing Cloud Privacy Concerns Regulation Privacy Calculus Trust Cloud Computing Adoption/ Rejection Cloud Benefits Model to enhance the trust of SMMEs in cloud computing

conclusion Cloud provides users with cost effective and accessibility benefits. Benefits and risks attached in cloud computing are key in deciding on investing thereon. There is a need for a conducive environment for such investment, hence more work must still be done in research. The privacy concerns in cloud are attributed to the legislative gap.

Conclusion CONT.. Regulators must now initiate a process of revising legislation and align it to POPIA as well as the National Integrated ICT Policy White Paper (2016), thus ensuring accountability. A sub-committee must be appointed in this regard. Regulators must avail resources to procure the required expertise to develop appropriate legislative framework. Regulators must not avoid but embrace these technological developments also as means to develop the SMMEs.

Auditor – Eastern Cape Gambling Board THANK YOU Zuko Phandle Auditor – Eastern Cape Gambling Board zukop@ecgb.org.za 043 702 8358/076 012 3411