A Fundamental Approach to Cyber Risk Analysis
Abstract
This article provides a framework for actuaries to think about cyber risk. We propose a differentiated view on cyber versus conventional risk by separating the nature of risk arrival from the target exposed to risk. Our review synthesizes the literature on cyber risk analysis from various disciplines, including computer and network engineering, economics, and actuarial sciences. As a result, we identify possible ways forward to improve rigorous modeling of cyber risk, including its driving factors. This is a prerequisite for establishing a deep and stable market for cyber risk insurance.
Keywords
Cyber risk; information technology; networks; economic modeling
Cite as
Böhme, R., Laube, S., & Riek, M. (2018). A Fundamental Approach to Cyber Risk Analysis. Variance, 11(2). (online first)Details
Publication type
Research article (journal)
Peer reviewed
Yes
Publication status
online first
Year
2018
Journal
Variance
Volume
11
Issue
2
Language
English
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