Electronic Security : Risk Mitigation in Financial Transactions - Public Policy Issues

This paper builds on a previous series of papers (see Claessens, Glaessner, and Klingebiel, 2001, 2002) that identified electronic security as a key component to the delivery of electronic finance benefits. This paper and its technical annexes (available separately at http://www1.worldbank.org/finance/) identify and discuss seven key pillars necessary to fostering a secure electronic environment. Hence, it is intended for those formulating broad policies in the area of electronic security and those working with financial services providers (for example, executives and management). The detailed annexes of this paper are especially relevant for chief information and security officers responsible for establishing layered security. First, this paper provides definitions of electronic finance and electronic security and explains why these issues deserve attention. Next, it presents a picture of the burgeoning global electronic security industry. Then it develops a risk-management framework for understanding the risks and tradeoffs inherent in the electronic security infrastructure. It also provides examples of tradeoffs that may arise with respect to technological innovation, privacy, quality of service, and security in designing an electronic security policy framework. Finally, it outlines issues in seven interrelated areas that often need attention in building an adequate electronic security infrastructure. These are: 1) The legal framework and enforcement. 2) Electronic security of payment systems. 3) Supervision and prevention challenges. 4) The role of private insurance as an essential monitoring mechanism. 5) Certification, standards, and the role of the public and private sectors. 6) Improving the accuracy of information on electronic security incidents and creating better arrangements for sharing this information. 7) Improving overall education on these issues as a key to enhancing prevention.

Bibliographic Details

Main Authors:	Glaessner, Thomas, Kellermann, Tom, McNevin, Valerie
Format:	Policy Research Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2002-07
Subjects:	ELECTRONIC TECHNOLOGY, SECURITY SYSTEMS, RISK MANAGEMENT, FINANCIAL MECHANISMS, POLICY FORMATION, FINANCIAL SERVICES DATA PROCESSING, INFORMATION PROCESSING, SECURITY TRADING, GLOBALIZATION, TECHNOLOGICAL INNOVATIONS, PRIVACY PROTECTION, PRIVACY RIGHTS, QUALITY OF SERVICE, POLICY FRAMEWORK, LEGAL FRAMEWORK, LAW ENFORCEMENT, PAYMENTS SYSTEMS, SUPERVISORY STRUCTURES, INSURANCE INDUSTRY, PRIVATE POLICE, MONITORING CRITERIA, PUBLIC SECTOR MANAGEMENT, PRIVATE SPONSORS, ELECTRONIC INFORMATION NETWORK ADEQUATE SECURITY, ASP, BANKING SYSTEM, BANKING SYSTEMS, COMMUNICATIONS TECHNOLOGY, CORRUPTION, CREDIT CARDS, CREDIT UNIONS, CRIME, CRIMES, CRIMINALS, ELECTRONIC COMMERCE, ELECTRONIC FUNDS, ELECTRONIC FUNDS TRANSFERS, ELECTRONIC MONEY, ELECTRONIC TRANSACTIONS, EMERGING MARKETS, ENCRYPTION, EXPLICIT KNOWLEDGE, FINANCIAL DEVELOPMENT, FINANCIAL INSTITUTIONS, FINANCIAL SERVICES, FINANCIAL TRANSACTIONS, FRAUD, INSTITUTIONAL ARRANGEMENTS, INSURANCE, INTERNATIONAL TELECOMMUNICATIONS, ISP, LAW ENFORCEMENT AGENCIES, LEGISLATION, LIABILITY, MARKET ECONOMIES, NATIONAL INFRASTRUCTURE, NETWORK TRAFFIC, NETWORKS, ONLINE BANKING, OPERATIONAL RISK, ORGANIZED CRIME, PAYMENT SYSTEMS, PROTOCOLS, PUBLIC AGENCIES, PUBLIC POLICIES, PUBLIC POLICY, REGULATORY FRAMEWORK, RETURN ON INVESTMENT, SAVINGS, SECURITY INFORMATION, SECURITY OFFICERS, SECURITY PROTOCOLS, SECURITY STANDARDS, SMART CARDS, SOCIAL SECURITY, TECHNOLOGICAL INNOVATION, TELEPHONY, TERRORISTS, THREATS, VIDEO CONFERENCE FACILITIES, WEB SITES,
Online Access:	http://documents.worldbank.org/curated/en/2002/07/1971353/electronic-security-risk-mitigation-financial-transactions-public-policy-issues http://hdl.handle.net/10986/19261
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