by IZZAT RATNA and Pic by TMR
Practitioners in key sectors need to harness robust risk management culture to protect against rising cyber attacks, said Second Finance Minister Datuk Seri Johari Abdul Ghani.
In his keynote address at the Malaysian Association of Risk and Insurance Management Conference 2017 yesterday, Johari said there is a need for risk practitioners to be quick in identifying and responding to cyber risks.
“As business transactions and financial services are becoming more digitised and reliant on the Internet, greater vigilance and flexibility is needed — given how fluid and unpredictable risks are these days with the advent of technology.
“Leadership teams of firms must take a strategic approach to cyber preparedness by putting in place the right governance and enhancing the awareness at levels,” he said.
“Special attention has to be given on firms’ cyber maturity — covering prevention of cyber risks, detection of and recovery from any cyber security issues to ensure customers’ personal information and data are not compromised.”
Stronger partnership between corporate risk managers, insurance companies and insurance brokers is essential in inculcating a more robust risk management and culture in Malaysia.
“As business models in all industries are becoming increasingly intricate, adaption to the ever evolving economic nature and brand new risks is vital for practitioners to remain competitive and relevant,” Johari added.
Apart from embedding the corporate governance culture, Johari said risk practitioners and insurers could also act as an agent to management culture in every aspect of business operations.
He added that it is vital for industry players to take the initiative to advance the quality and coverage of risk information that is useful across a broad spectrum of areas, such as information on hazard exposure, demographic changes and technological risks.
Deputy Science, Technology and Innovation Minister Datuk Dr Abu Bakar Mohamad Diah recently said cyber crimes including fraud, hacktivism, online scams, espionage and harassment have been on the rise over the last decade.
According to CyberSecurity Malaysia’s latest data, a total of 3,928 cyber crime incidences have been reported between January and June this year.
Between 2012 and 2016, CyberSecurity Malaysia received 50,789 cyber security incident reports.
Johari stressed that insurers and risk practitioners alike also need to look into the possibility of utilising big data.
“Big data technologies can help risk teams gain more risk intelligence, drawn from a variety of data sources in almost real-time.
“Within the financial services industry, they can allow asset managers, banks, and insurance companies to proactively detect potential risks, react faster and more effectively,” he added.