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In this study an exploration of insurance risk transfer is undertaken for the cyber insurance industry in the United States of America, based on the leading industry dataset of cyber events provided by Advisen. We seek to address two core…

Risk Management · Quantitative Finance 2022-03-16 Matteo Malavasi , Gareth W. Peters , Pavel V. Shevchenko , Stefan Trück , Jiwook Jang , Georgy Sofronov

Cyber assurance, which is the ability to operate under the onslaught of cyber attacks and other unexpected events, is essential for organizations facing inundating security threats on a daily basis. Organizations usually employ multiple…

Cryptography and Security · Computer Science 2022-07-26 Nan Sun , Chang-Tsun Li , Hin Chan , Md Zahidul Islam , Md Rafiqul Islam , Warren Armstrong

From denial-of-service attacks to spreading of ransomware or other malware across an organization's network, it is possible that manually operated defenses are not able to respond in real time at the scale required, and when a breach is…

Cryptography and Security · Computer Science 2022-01-28 Alexandre K. Ligo , Alexander Kott , Igor Linkov

Cyber hygiene measures are often recommended for strengthening an organization's security posture, especially for protecting against social engineering attacks that target the human element. However, the related recommendations are…

Cryptography and Security · Computer Science 2020-01-14 Sakshyam Panda , Emmanouil Panaousis , George Loukas , Christos Laoudias

In this paper, we formulate cyber risk management and mitigation as a stochastic optimal control problem under a stochastic Susceptible-Infected-Susceptible (SIS) epidemic model. To capture the dynamics and interplay of management and…

Optimization and Control · Mathematics 2026-01-29 Shize Na , Zhuo Jin , Ran Xu , Hailiang Yang

Active cyber defense is one important defensive method for combating cyber attacks. Unlike traditional defensive methods such as firewall-based filtering and anti-malware tools, active cyber defense is based on spreading "white" or "benign"…

Cryptography and Security · Computer Science 2016-03-29 Wenlian Lu , Shouhuai Xu , Xinlei Yi

Cyber insurance is a key component in risk management, intended to transfer risks and support business recovery in the event of a cyber incident. As cyber insurance is still a new concept in practice and research, there are many unanswered…

Cryptography and Security · Computer Science 2021-06-22 Jason R. C. Nurse , Louise Axon , Arnau Erola , Ioannis Agrafiotis , Michael Goldsmith , Sadie Creese

Risk assessment is a major challenge for supply chain managers, as it potentially affects business factors such as service costs, supplier competition and customer expectations. The increasing interconnectivity between organisations has put…

Machine Learning · Statistics 2019-11-27 Alberto Redondo , Alberto Torres-Barrán , David Ríos Insua , Jordi Domingo

We introduce a game-theoretic model to investigate the strategic interaction between a cyber insurance policyholder whose premium depends on her self-reported security level and an insurer with the power to audit the security level upon…

Cryptography and Security · Computer Science 2019-08-15 Sakshyam Panda , Daniel W Woods , Aron Laszka , Andrew Fielder , Emmanouil Panaousis

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…

Optimization and Control · Mathematics 2025-11-11 Dan Goreac , Juan Li , Pangbo Wang

Facing the lack of cyber insurance loss data, we propose an innovative approach for pricing cyber insurance for a large-scale network based on synthetic data. The synthetic data is generated by the proposed risk spreading and recovering…

Social and Information Networks · Computer Science 2020-07-02 Lei Hua , Maochao Xu

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…

Computational Engineering, Finance, and Science · Computer Science 2024-08-27 Xiaoyu Zhang , Maochao Xu , Shouhuai Xu

Today business environment is highly dependent on complex technologies, and information is considered an important asset. Organizations are therefore required to protect their information infrastructure and follow an inclusive risk…

Computers and Society · Computer Science 2015-12-15 Pankaj Pandey

Cyber risk classifications are widely used in the modeling of cyber event distributions, yet their effectiveness in out of sample forecasting performance remains underexplored. In this paper, we analyse the most commonly used…

Cryptography and Security · Computer Science 2024-10-10 Matteo Malavasi , Gareth W. Peters , Stefan Treuck , Pavel V. Shevchenko , Jiwook Jang , Georgy Sofronov

This paper addresses the problem of distributed resilient state estimation and control for linear time-invariant systems in the presence of malicious false data injection sensor attacks and bounded noise. We consider a system operator…

Systems and Control · Electrical Eng. & Systems 2025-07-17 Takumi Shinohara , Karl H. Johansson , Henrik Sandberg

Previous studies into the budget constraint of portfolio optimization problems based on statistical mechanical informatics have not considered that the purchase cost per unit of each asset is distinct. Moreover, the fact that the optimal…

Portfolio Management · Quantitative Finance 2019-06-26 Takashi Shinzato

Internet of Things (IoT) is highly vulnerable to emerging Advanced Persistent Threats (APTs) that are often operated by well-resourced adversaries. Achieving perfect security for IoT networks is often cost-prohibitive if not impossible.…

Cryptography and Security · Computer Science 2019-11-25 Rui Zhang , Quanyan Zhu

In this paper we consider reinsurance or risk sharing from a macroeconomic point of view. Our aim is to find socially optimal reinsurance treaties. In our setting we assume that there are $n$ insurance companies each bearing a certain risk…

Risk Management · Quantitative Finance 2021-07-21 Nicole Bäuerle , Alexander Glauner

When AI systems make errors in high-stakes domains like medical diagnosis or autonomous vehicles, a single algorithmic flaw across varying operational contexts can generate highly heterogeneous losses that challenge traditional insurance…

Machine Learning · Computer Science 2026-03-31 Dimitris Bertsimas , Agni Orfanoudaki

Dependence on information, including for some of the world's largest organisations such as governments and multi-national corporations, has grown rapidly in recent years. However, reports of information security breaches and their…

Computers and Society · Computer Science 2016-06-14 Craig A. Horne , Atif Ahmad , Sean B. Maynard