Industrial Control Systems (ICS) are an integral part of the industrial infrastructure providing for the national good. These systems include Distributed Control Systems (DCS) Supervisory Control and Data Acquisition systems (SCADA), Programmable Logic Controllers (PLC), and devices such as remote telemetry units (RTU), smart meters, and intelligent field instruments including remotely programm...

We investigate the valuation of catastrophe insurance derivatives that are traded at the Chicago Board of Trade. By modeling the underlying index as a compound Poisson process we give a representation of no-arbitrage price processes using Fourier analysis. This characterization enables us to derive the inverse Fourier transform of prices in closed form for every fixed equivalent martingale meas...

Hosts (or nodes) in the Internet often face epidemic risks such as virus and worm attack. Despite the awareness of these risks and the importance of network/system security, investment in security protection is still scare, and hence epidemic risk is still prevalent. Deciding whether to invest in security protection is an interdependent process: security investment decision made by one node can...

Cyber-Physical System (CPS) is a system of systems which integrates physical system with cyber capability in order to improve the physical performance [1]. So far, it is being widely applied in areas closely related to national economy and people’s daily lives. Therefore, CPS security problems have drawn a global attention and an appropriate risk assessment for CPS is in urgent need. According ...

In various domains such as energy, manufacturing, and maritime, cyber–physical systems (CPSs) have seen increased interest. Both academia industry focused on the cybersecurity aspects of systems. The assessment cyber risks in a CPS is popular research area with many existing approaches that aim to suggest relevant methods practices. However, few works addressed extensive objective evaluation pr...

Firms cannot function successfully without managing a host of internal and external organizational and process interdependencies. Part of this involves business continuity planning, which directly affects how resilient a firm and its business sector are in the face of disruptions. This paper presents the results of field studies related to information risk management practices in the health car...

Threats in cyberspace can be classified in many ways. This is evident when you look at cyber security on a multinational level. One of the most common models is a threefold classification based on motivational factors. Most nations use this model as a foundation when creating a strategy to handle cyber security threats as it pertains to them. This paper will use the five level model: cyber acti...

We provide an experimental analysis of competitive insurance markets with adverse selection. Our parameterized version of the lemons’ model (Akerlof 1970) in the insurance context predicts total crowding out of low-risks when insurers offer a single full insurance contract. The therapy proposed by Rothschild and Stiglitz (1976) to solve this major inefficiency consists of adding a partial insur...

Participants in student loan programs must repay loans in full regardless of whether they complete college. But many students who take out a loan do not earn a degree (the dropout rate among college students is between 33 to 50 percent). We examine whether insurance against college-failure risk can be offered, taking into account moral hazard and adverse selection. To do so, we develop a model ...