SC Cyber Risk Compliance & Assessment
Independent audit and threat assessment services aligned to the Securities Commission (SC) Malaysia Guidelines on Management of Cyber Risk. Built to deliver examiner-ready reporting for licensed capital market entities.
Securities Commission Cyber Risk Mandates
The Securities Commission (SC) Malaysia mandates that all capital market intermediaries and digital asset platforms establish robust governance, implement rigorous technical controls, and subject their infrastructure to regular independent evaluations. As cyber attacks targeting capital market infrastructure grow in sophistication, compliance is no longer just a checkbox, but an operational resilience baseline.
nCrypt provides comprehensive, independent cybersecurity assessments specifically tailored to SC Guidelines. Our certified auditors evaluate your logical and physical security parameters, verify your governance frameworks, map security controls to SC requirements, and draft formal audit documentation ready for submission.
Whether you are a traditional fund management firm, a newly licensed broker in Kuala Lumpur, or an active digital market operator (DAX/ECF/P2P) undergoing regulatory review, we ensure your organization achieves compliance with zero operational friction.
Compliance Deliverables Include
Cyber Risk Framework Review
Evaluation of your active policies, reporting hierarchies, board governance, and risk registers against SC clause specifications to identify policy gaps.
Technical Vulnerability & Penetration Auditing
Annual security testing of client-facing platforms, internal APIs, trading systems, and cloud infrastructure as explicitly required by the Guidelines.
Incident Response Playbook Verification
Stress-testing your incident containment, disaster recovery, and mandatory SC 24-hour reporting timelines through structured tabletop exercises.
Third-Party Vendor Risk Assessment
Audit of outsourced platforms, cloud service providers, and critical APIs to ensure supply chain partners do not introduce regulatory vulnerabilities.
Access Control & Identity Auditing
Review of logical privilege boundaries, multi-factor authentication (MFA) enforcement, and employee offboarding protocols.
Examiner-Ready Compliance Pack
Detailed gap register, completed compliance checklists, vulnerability report summaries, and remediation roadmap ready for audit submission.
Our Assessment Methodology — 5 Phases
Information Gathering & Scope definition
Detailed onboarding and documentation review. We examine existing security policies, network architecture diagrams, previous audits, and roles registers.
Governance & Policy Gap Analysis
Interviews with management, CISO, and compliance leads. We score your cyber risk framework alignment and flag missing regulatory requirements.
Technical Control Testing
Independent configuration audits of routers, firewalls, and cloud directories, coupled with mandatory vulnerability scans and target penetration testing.
Risk Modeling & Remediation Advisory
Mapping identified technical and process issues back to specific SC clauses, ranking severity, and detailing step-by-step remediation plans.
Final Handover & Attestation Review
Presentation of the audit findings pack to the board or compliance leads, including the examiner Q&A preparation guide and signed independent assessment certificate.
Frequently Asked Questions
Which entities are required to comply with the SC Guidelines on Management of Cyber Risk?
The guidelines apply to all Capital Market Entities (CMEs) licensed or registered under the Securities Commission Malaysia. This includes investment banks, stockbroking firms, fund management companies, futures brokers, clearing houses, unit trust schemes, and digital capital market operators (such as Digital Asset Exchanges/DAX, Equity Crowdfunding/ECF, and Peer-to-Peer/P2P financing platforms).
How often must capital market entities conduct vulnerability assessments and penetration testing?
Under the SC guidelines, CMEs are required to perform vulnerability assessments and penetration testing on all critical systems at least once a year. Additionally, tests must be conducted after any material change to infrastructure, system architecture, or application deployment.
What is the role of the Board and Management under these guidelines?
The SC places ultimate accountability on the Board of Directors and senior management. The Board is responsible for establishing cyber risk governance, approving the cyber risk management framework, designating a Chief Information Security Officer (CISO) or equivalent security lead, and reviewing cyber incident report summaries and independent audit findings regularly.
What are the reporting timelines for cyber security incidents to the Securities Commission?
CMEs are required to report any material cyber security incident to the Securities Commission Malaysia immediately, typically within 24 hours of detecting the event. This must be followed by a full incident investigation report detailing root causes, impact, and remediation steps once containment is complete.
What does an independent SC Cyber Risk audit cover?
An independent audit evaluates the adequacy and effectiveness of the CME's cyber risk management framework, compliance with the SC guidelines, firewall and endpoint configurations, identity and access management (IAM), data protection measures, third-party vendor risk, and incident response readiness.
Ready to secure your SC compliance?
Ensure your capital market operations are fully compliant. Get in touch with our lead regulatory auditors to define your scope.
Get a Compliance ScopeNot sure what you need?
Tell us what needs testing and we come back with a fixed fee within 48 hours — no hourly estimates.