Turning crisis into opportunity: the emergence of cyber risk takaful in the digital world
Publication date: 3 September 2024
Abstract
Learning outcomes
After reading this case study, students will be able to understand the impact of cyber threats on businesses; explore the intersection of innovation and ethical considerations; understand the proactive role of entrepreneurs in identifying gaps in traditional industries, such as insurance, and innovating solutions that align with local dynamics; and learn to formulate strategies addressing cultural factors, market gaps and challenges.
Case overview/synopsis
The case study follows Hasnain, a prosperous entrepreneur in Pakistan, who was surprised by the news of a cyberattack on Bank Islami. This event, coupled with a personal data breach in his family’s business, triggered Hasnain’s willingness and interest to address the growing threat of cyber risks and attacks. As the progenitor of a digital solutions startup, he identified a gap in the insurance industry’s replication to cyber threats and envisioned the desideratum for a Sharia-compliant cyber-insurance product withal called cyber risk takaful. The case study explores Hasnain’s journey as he contemplated the challenges of introducing cyber risk takaful – a Sharia-compliant insurance solution for businesses and individuals. Apperceiving the low vigilance and perceived costs associated with cyber insurance, Hasnain faced the dilemma of surmounting these barriers in a country where the penetration of insurance, in general, is already minimal. The story raises critical questions: How can Hasnain efficaciously introduce cyber risk takaful to a market reluctant to embrace cyber insurance? What business strategies should he use to engender vigilance and acceptance of this innovative insurance solution? Will businesses and individuals embrace the concept of cyber risk takaful and recognize its paramount in forfending their digital assets?
Complexity academic level
This case study is designed to meet the educational needs of both undergraduate and postgraduate students, particularly those enrolled in business administration programs. This case study is tailored for students in the final year of BBA and the first year of MBA programs. It is also well-suited for executive education programs that focus on strategic decision-making in the context of emerging market challenges, such as entrepreneurship and corporate strategy. The case study is particularly relevant for courses centered on entrepreneurship, business strategy, strategic management and corporate strategy.
Supplementary materials
Teaching notes are available for educators only.
Subject code
CSS11: Entrepreneurship.
Keywords
Acknowledgements
Ubedullah Memon, Muhammad Waseem, Muhammad Zain ul Abidin, Zeeshan Junejo and Masroor Ali developed this case study to facilitate classroom discussion. It should be noted that the case study does not aim to endorse any particular viewpoint, provide primary data or show either effective or ineffective decision-making or business processes.
Disclaimer. This case is written solely for educational purposes and is not intended to represent successful or unsuccessful managerial decision-making. The authors may have disguised names; financial and other recognizable information to protect confidentiality.
Citation
Memon, U., Waseem, M., Zain ul Abidin, M., Junejo, Z. and Ali, M. (2024), "Turning crisis into opportunity: the emergence of cyber risk takaful in the digital world", , Vol. 14 No. 3. https://doi.org/10.1108/EEMCS-12-2023-0467
Publisher
:Emerald Publishing Limited
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