Related papers: Modeling and Pricing Cyber Insurance -- Idiosyncra…
Our homes are increasingly employing various kinds of Internet of Things (IoT) devices, leading to the notion of smart homes. While this trend brings convenience to our daily life, it also introduces cyber risks. To mitigate such risks, the…
Given the rapid evolution of threats to cyber systems, new management approaches are needed that address risk across all interdependent domains (i.e., physical, information, cognitive, and social) of cyber systems. Further, the traditional…
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…
This paper introduces new valuation schemes called actuarial-consistent valuations for insurance liabilities which depend on both financial and actuarial risks, which imposes that all actuarial risks are priced via standard actuarial…
This paper is devoted to measuring the security of cyber networks under advanced persistent threats (APTs). First, an APT-based cyber attack-defense process is modeled as an individual-level dynamical system. Second, the dynamic model is…
Cyber-physical systems require the construction and management of various models to assure their correct, safe, and secure operation. These various models are necessary because of the coupled physical and computational dynamics present in…
Artificial intelligence risks are multidimensional in nature, as the same risk scenarios may have legal, operational, and financial risk dimensions. With the emergence of new AI regulations, the state of the art of artificial intelligence…
In times of Industry 4.0 and cyber-physical systems (CPS) providing security is one of the biggest challenges. A cyber attack launched at a CPS poses a huge threat, since a security incident may affect both the cyber and the physical world.…
Much research in systemic risk is focused on default contagion. While this demands an understanding of valuation, fewer articles specifically deal with the existence, the uniqueness, and the computation of equilibrium prices in structural…
This paper has a double aim. One the one hand, we introduce a uni-nodal network model for cyber risks with firewalled edges and SIR intra-edge spreading. In connection to this, we formulate an insurance problem in which one seeks the…
The prominence and use of the concept of cyber risk has been rising in recent years. This paper presents empirical investigations focused on two important and distinct groups within the broad community of cyber-defense professionals and…
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…
Cyber risk assessment is a fundamental activity for enhancing the protection of an organization, identifying and evaluating the exposure to cyber threats. Currently, this activity is carried out mainly manually and the identification and…
When investing in cyber security resources, information security managers have to follow effective decision-making strategies. We refer to this as the cyber security investment challenge. In this paper, we consider three possible…
This paper provides the first large-scale data-driven analysis to evaluate the predictive power of different attributes for assessing risk of cyberattack data breaches. Furthermore, motivated by rapid increase in third party enabled…
Municipalities are vulnerable to cyberattacks with devastating consequences, but they lack key information to evaluate their own risk and compare their security posture to peers. Using data from 83 municipalities collected via a…
Efficient risk transfer is an important condition for ensuring the sustainability of a market according to the established economics literature. In an inefficient market, significant financial imbalances may develop and potentially…
Although general-purpose AI systems offer transformational opportunities in science and industry, they simultaneously raise critical concerns about safety, misuse, and potential loss of control. Despite these risks, methods for assessing…
Cybersecurity attacks are a major and increasing burden to economic and social systems globally. Here we analyze the principles of security in different domains and demonstrate an architectural flaw in current cybersecurity. Cybersecurity…
Although discourse around the risks of Artificial Intelligence (AI) has grown, it often lacks a comprehensive, multidimensional framework, and concrete causal pathways mapping hazard to harm. This paper aims to bridge this gap by examining…