Cyber risk insurance policy a proposed frameworkfor e-business in Malaysia

Abstract

Security risks can significantly affect the e-business company's reputation as well as the financial performance. Due to the increasing rate of the security breaches in Malaysia, the impacts should be handled with care to prevent the company from exposing to major financial and legal liabilities. E-business companies can manage their security risks by reducing it using technology like firewall, intrusion prevention tools, reducing the financial risk through insurance or maintaining the risk at an acceptable level. This research is aimed to propose an insurance procurement framework for both the insurer and the insured companies to promote a greater understanding of the alternatives of managing cyber risks. The research will study on the security structures and flows of the e-business in Malaysia context, review on the Internet computer crime and security issues locally and internationally, analyse on the international cyber-risk e-business and individual insurance policies and alternative solutions. A preliminary investigation was conducted on current business and individual insurance policy across various insurance companies in Malaysia. A survey on sample users for e-business and insurance companies in Malaysia on the effectiveness of the solution was done. Finally this research proposed a cyber-risk insurance policy framework to provide useful insights for policy formulation.