Aggregate Cyber-Risk Management in the IoT Age: Cautionary Statistics for (Re)Insurers and Likes
Performance
2021-05-06 v1 Systems and Control
Systems and Control
Risk Management
Abstract
In this paper, we provide (i) a rigorous general theory to elicit conditions on (tail-dependent) heavy-tailed cyber-risk distributions under which a risk management firm might find it (non)sustainable to provide aggregate cyber-risk coverage services for smart societies, and (ii)a real-data driven numerical study to validate claims made in theory assuming boundedly rational cyber-risk managers, alongside providing ideas to boost markets that aggregate dependent cyber-risks with heavy-tails.To the best of our knowledge, this is the only complete general theory till date on the feasibility of aggregate cyber-risk management.
Keywords
Cite
@article{arxiv.2105.01792,
title = {Aggregate Cyber-Risk Management in the IoT Age: Cautionary Statistics for (Re)Insurers and Likes},
author = {Ranjan Pal and Ziyuan Huang and Xinlong Yin and Sergey Lototsky and Swades De and Sasu Tarkoma and Mingyan Liu and Jon Crowcroft and Nishanth Sastry},
journal= {arXiv preprint arXiv:2105.01792},
year = {2021}
}
Comments
incrementally updated version to version in IEEE Internet of Things Journal