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Related papers: Cyber Risk Frequency, Severity and Insurance Viabi…

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Quantifying cyber risks is essential for organizations to grasp their vulnerability to threats and make informed decisions. However, current approaches still need to work on blending economic viewpoints to provide insightful analysis. To…

Cryptography and Security · Computer Science 2024-05-07 Muriel Figueredo Franco , Aiatur Rahaman Mullick , Santosh Jha

Understanding the emergence of data breaches is crucial for cyber insurance. However, analyses of data breach frequency trends in the current literature lead to contradictory conclusions. We put forward that those discrepancies may be (at…

Risk Management · Quantitative Finance 2024-07-02 Benjamin Avanzi , Xingyun Tan , Greg Taylor , Bernard Wong

Recent transformative and disruptive advancements in the insurance industry have embraced various InsurTech innovations. In particular, with the rapid progress in data science and computational capabilities, InsurTech is able to integrate a…

Risk Management · Quantitative Finance 2024-01-31 Zhiyu Quan , Changyue Hu , Panyi Dong , Emiliano A. Valdez

Cyber threats affect all kinds of organisations. Risk analysis is an essential methodology for cybersecurity as it allows organisations to deal with the cyber threats potentially affecting them, prioritise the defence of their assets and…

Cryptography and Security · Computer Science 2019-03-20 David Rios Insua , Aitor Couce Vieira , Jose Antonio Rubio , Wolter Pieters , Katsiaryna Labunets , Daniel Garcia Rasines

Cyber risk has become a critical financial threat in today's interconnected digital economy. This paper introduces a cyber-risk management framework for networked digital systems that combines the strategic behavior of players with…

Cryptography and Security · Computer Science 2026-01-26 Elisa Botteghi , Martino S. Centonze , Davide Pastorello , Daniele Tantari

The frequent occurrence of cyber risks and their serious economic consequences have created a growth market for cyber insurance. The calculation of aggregate losses, an essential step in insurance pricing, has attracted considerable…

Risk Management · Quantitative Finance 2024-08-27 Na Ren , Xin Zhang

Modeling and simulation are widely used in cybersecurity research to assess cyber threats, evaluate defense mechanisms, and analyze vulnerabilities. However, the diversity of application areas, the variety of cyberattacks scenarios, and the…

Cryptography and Security · Computer Science 2025-08-11 Luca Serena , Gabriele D'Angelo , Stefano Ferretti , Moreno Marzolla

Typical risk classification procedure in insurance is consists of a priori risk classification determined by observable risk characteristics, and a posteriori risk classification where the premium is adjusted to reflect the policyholder's…

Applications · Statistics 2020-02-04 Rosy Oh , Youngju Lee , Dan Zhu , Jae Youn Ahn

Based on classical contagion models we introduce an artificial cyber lab: the digital twin of a complex cyber system in which possible cyber resilience measures may be implemented and tested. Using the lab, in numerical case studies, we…

Cryptography and Security · Computer Science 2023-09-08 Kerstin Awiszus , Yannick Bell , Jan Lüttringhaus , Gregor Svindland , Alexander Voß , Stefan Weber

Not a day goes by without news about a cyber attack. Fear spreads out and lots of wrong ideas circulate. This survey aims at showing how all these uncertainties about cyber can be transformed into manageable risk. After reviewing the main…

Cryptography and Security · Computer Science 2023-03-24 Michel Dacorogna , Marie Kratz

This paper proposes a flexible and analytically tractable class of frequency and severity models for predicting insurance claims. The proposed model is able to capture nonlinear relationships in explanatory variables by characterizing the…

Econometrics · Economics 2025-04-01 Dong-Young Lim

The frequent occurrence of natural disasters has posed significant challenges to society, necessitating the urgent development of effective risk management strategies. From the early informal community-based risk sharing mechanisms to…

Risk Management · Quantitative Finance 2025-08-06 Lichen Wang , Shijia Hua , Yuyuan Liu , Zhengyuan Lu , Liang Zhang , Linjie Liu , Attila Szolnoki

This project works with the risk model developed by Li et al. (2015) and quests modelling, estimating and pricing insurance for risks brought in by innovative technologies, or other emerging or latent risks. The model considers two…

Statistics Theory · Mathematics 2019-05-20 Weihong Ni , Corina Constantinescu , Alfredo Egídio dos Reis , Véronique Maume-Deschamps

Cyber-security breaches inflict significant costs on organizations. Hence, the development of an information-systems defense capability through cyber-security investment is a prerequisite. The question of how to determine the optimal amount…

Cryptography and Security · Computer Science 2021-12-09 Dimitri Percia David , Alain Mermoud , Sébastien Gillard

We extract firms' cyber risk with a machine learning algorithm measuring the proximity between their disclosures and a dedicated cyber corpus. Our approach outperforms dictionary methods, uses full disclosure and not devoted-only sections,…

Portfolio Management · Quantitative Finance 2024-03-06 Daniel Celeny , Loïc Maréchal

Cyber risk refers to the risk of defacing reputation, monetary losses, or disruption of an organization or individuals, and this situation usually occurs by the unconscious use of cyber systems. The cyber risk is unhurriedly increasing day…

Cryptography and Security · Computer Science 2024-04-02 Fatama Tuz Johora , Md Shahedul Islam Khan , Esrath Kanon , Mohammad Abu Tareq Rony , Md Zubair , Iqbal H. Sarker

Cybersecurity risk is commonly expressed through impact and likelihood, yet likelihood remains difficult to estimate because cyber incidents are underreported, heterogeneous datasets are weakly comparable, and attacker behaviour changes…

We study the impact of data sharing policies on cyber insurance markets. These policies have been proposed to address the scarcity of data about cyber threats, which is essential to manage cyber risks. We propose a Cournot duopoly…

Theoretical Economics · Economics 2023-08-03 Carlos Barreto , Olof Reinert , Tobias Wiesinger , Ulrik Franke

In this paper we present a study on using novel data types to perform cyber risk quantification by estimating the likelihood of a data breach. We demonstrate that it is feasible to build a highly accurate cyber risk assessment model using…

Cryptography and Security · Computer Science 2025-06-10 Armin Sarabi , Manish Karir , Mingyan Liu

The lack of high-quality public cyber incident data limits empirical research and predictive modeling for cyber risk assessment. This challenge persists due to the reluctance of companies to disclose incidents that could damage their…

Risk Management · Quantitative Finance 2026-03-20 Jiayi Guo , Zhiyu Quan , Linfeng Zhang