相关论文: Mitigating Moral Hazard in Cyber Insurance Using R…

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…

We analyze the limiting behavior of the risk premium associated with the Pareto optimal risk sharing contract in an infinitely expanding pool of risks under a general class of law-invariant risk measures encompassing rank-dependent utility…

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…

Safety risk assessment is an essential process to ensure a dependable Cyber-Physical System (CPS) design. Traditional risk assessment considers only physical failures. For modern CPS, failures caused by cyber attacks are on the rise. The…

Cyber risks are the most common risks encountered by a modern network system. However, it is significantly difficult to assess the joint cyber risk owing to the network topology, risk propagation, and heterogeneities of components. In this…

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…

While users claim to be concerned about privacy, often they do little to protect their privacy in their online actions. One prominent explanation for this "privacy paradox" is that when an individual shares her data, it is not just her…

This work considers the problem of resilient consensus where stochastic values of trust between agents are available. Specifically, we derive a unified mathematical framework to characterize convergence, deviation of the consensus from the…

Cyber Threat Intelligence (CTI) sharing is an important activity to reduce information asymmetries between attackers and defenders. However, this activity presents challenges due to the tension between data sharing and confidentiality, that…

In this paper, we extend the optimal securitisation model of Pag\`es [50] and Possama\"i and Pag\`es [51] between an investor and a bank to a setting allowing both moral hazard and adverse selection. Following the recent approach to these…

Risk aversion and insurance are two prominent and interconnected concepts in economics and finance. To explore their fundamental connection, we introduce risk-insurance parity, which associates various classes of insurance contracts with…

We study the classic principal-agent model when the signal observed by the principal is chosen by the agent. We fully characterize the optimal information structure from an agent's perspective in a general moral hazard setting with limited…

Cyber-physical systems (CPS) data privacy protection during sharing, aggregating, and publishing is a challenging problem. Several privacy protection mechanisms have been developed in the literature to protect sensitive data from…

Foundation models are increasingly becoming better autonomous programmers, raising the prospect that they could also automate dangerous offensive cyber-operations. Current frontier model audits probe the cybersecurity risks of such agents,…

Concerns for the resilience of Cyber-Physical Systems (CPS)s in critical infrastructure are growing. CPS integrate sensing, computation, control, and networking into physical objects and mission-critical services, connecting traditional…

Nowadays, auto insurance companies set personalized insurance rate based on data gathered directly from their customers' cars. In this paper, we show such a personalized insurance mechanism -- wildly adopted by many auto insurance companies…

We study the role of regulatory inspections in a contract design problem in which a principal interacts separately with multiple agents. Each agent's hidden action includes a dimension that determines whether they undertake an extra costly…

Complex, interconnected cyber-physical systems (CPS) are increasingly prevalent in domains such as power systems. Cyber-resilient architectures have been proposed to recover compromised cyber components of CPS. Recent works have studied…

We consider the classic principal-agent model of contract theory, in which a principal designs an outcome-dependent compensation scheme to incentivize an agent to take a costly and unobservable action. When all of the model…

Cyber-Physical Systems (CPS) use computational resources to control physical process and provide critical services. For this reason, an attack in these systems may have dangerous consequences in the physical world. Hence, resilience is a…