Terrorist groups are currently using information and communication technologies (ICTs) to orchestrate their conventional attacks. More recently, terrorists have been developing a new form of capability within the cyber-arena to coordinate cyber-based attacks. This chapter identifies that cyber-terrorism capabilities are an integral, imperative, yet under-researched component in establishing, an...

We propose a comprehensive formal framework to classify all market models of cyber-insurance we are aware of. The framework features a common terminology and deals with the specific properties of cyber-risk in a unified way: interdependent security, correlated risk, and information asymmetries. A survey of existing models, tabulated according to our framework, reveals a discrepancy between info...

Recently, cyber security for non-computers, such as transportation, utility, home appliance and others has become a serious social concern. Intelligent and electrifi cated modern vehicles have more MCU(micro controller unit)s, more software code than ever, which comes with huge cyber risks. Especially increased connectivity between vehicles and smart-phones / portable music-players changes the ...

Internet users such as individuals and organizations are subject to different types of epidemic risks such as worms, viruses, spams, and botnets. To reduce the probability of risk, an Internet user generally invests in traditional security mechanisms like anti-virus and anti-spam software, sometimes also known as self-defense mechanisms. However, such software does not completely eliminate risk...

For many individuals and organizations, cyber-insurance is the most practical and only way of handling a major financial impact of an information security event. However, the cyber-insurance market suffers from the problem of information asymmetry, lack of product diversity, illiquidity, high transaction cost, and so on. On the other hand, in theory, capital market-based financial instruments c...

[email protected] • [email protected] • [email protected] Abstract Firms often manage cyber risks first by investing in security technologies and then by purchasing cyber insurance to cover for residual risk. However, despite the increasing dependence of firms on information assets, a mature market for cyber insurance is yet to emerge. Lack of actuarial data, market inexperience and account...

High correlation in failure of information systems due to worms and viruses has been cited as major impediment to cyber-insurance. However, of the many cyber-risk classes that influence failure of information systems, not all exhibit similar correlation properties. In this paper, we introduce a new classification of correlation properties of cyber-risks based on a twin-tier approach. At the fir...

Computer and network systems fall victim to many cyber attacks of different forms. To reduce the risks of cyber attacks, an organization needs to understand and assess them, make decisions about what types of barriers or protection mechanisms are necessary to defend against them, and decide where to place such mechanisms. Understanding cyber attack characteristics (threats, attack activities, s...