Advancing Cyber Risk Insurance Underwriting Model Risk Management beyond VaR to Pre-Empt and Prevent the Forthcoming Global Cyber Insurance Crisis

2017 ◽  
Author(s):  
Yogesh Malhotra
Keyword(s):  
Risk Management ◽  
Model Risk ◽  
Cyber Insurance ◽  
Risk Insurance ◽  
Cyber Risk

Cyber Insurance as a Way of Cyber Risks Management

2019 ◽  
Vol 7 (5) ◽  
pp. 35-42
Author(s):  
Александр Суворов ◽  
Aleksandr Suvorov ◽  
Мария Матанцева ◽  
Mariya Matanceva ◽  
Евгения Плотникова ◽  
...  
Keyword(s):  
Cyber Security ◽  
Insurance Industry ◽  
Security Level ◽  
Controversial Issues ◽  
It Infrastructure ◽  
Software Products ◽  
Cyber Insurance ◽  
Risk Insurance ◽  
Commercial Organization ◽  
Cyber Risk

A review of the cyber insurance domain has been carried out with a description of classical terms from the insurance industry. Have been considered two the most comprehensive today definitions of cyber risk in authors’ opinion. A diagram of processes for cyber risk management using insurance has been presented, and the place of cyber-risk among other company’s risks has been demonstrated, i. e. the context of cyber risk among the risks of any commercial organization has been shown. A typical cyber insurance process has been described, and a scheme of cyber insurance processes has been developed. A brief description of problem areas and controversial issues in cyber insurance, with which cyber-risk insurance practices may face, has been presented, as well as a table showing at which stage of cyber-insurance the specific problems may arise. Has been provided the basic economic utility function, which formalizes decision making for agents with a different attitude to risk. Standards in cyber security, and various software products that can be used as a tool for assessing the security level of an enterprise’s IT infrastructure have been presented, and it has been demonstrated how these products can help in cyber risk assessment. Different methods used at each stage of cyber insurance have been shown.

scholarly journals Legal problems of insurance protection against cyber risks in space activities

2021 ◽  
pp. 268-276
Author(s):  
Nataliia Krasilich
Keyword(s):  
State Regulation ◽  
Cyber Attacks ◽  
Insurance Companies ◽  
Cyber Insurance ◽  
Insurance Contracts ◽  
Cyber Threats ◽  
Risk Insurance ◽  
Cyber Risk ◽  
Space Activities ◽  
Insured Event

General global trends in space activities are largely related to the need to protect space information technology from possible cyber threats. The issue of cybersecurity in space activities needs to be thoroughly studied and resolved, as the current state of space activities and existing mechanisms of international and state regulation do not provide a sufficient solution. Disruption of the process of receiving and exchanging information through space information systems can lead to significant consequences. The growing number of cyber threats is becoming more common and destructive. Therefore, the assessment of cyber vulnerabilities in space systems is an important task that must be addressed both at the stage of creation and development, and in the operation of such systems. This, in turn, requires the availability of tools to address the above tasks and qualified personnel. One of the legal ways to protect against the negative effects of cyber threats, including in the field of space activities, may be cyber risk insurance, as a financial and legal mechanism for compensation, loss of losses caused by cyber attacks. In Ukraine, cyber insurance is in its infancy and needs to develop innovative approaches to further development, taking into account the accumulated positive experience of foreign countries in this area. At the moment, insurance companies are only developing the practice of cyber risk insurance and such insurance contracts are isolated. In the current environment, as a rule, the issue of cyber risk insurance is included in comprehensive property insurance contracts, liability insurance, financial risks, which significantly limits the compensation of damages. The main difficulty in the process of indemnification under a cyber risk insurance contract is to record the fact of the insured event, the amount of damage and prove the causal link between the insured event and the claimed losses, as the amount of damage must not only be calculated but also documented. Space information technologies, which are increasingly penetrating economic and social processes, necessitate the development of a segment of cyber insurance in the field of space activities, which will provide adequate insurance protection and compensation for damages to the insured due to cyber incidents. Cyber risk insurance issues should be reflected in national legislation.

Data Breach, Privacy, and Cyber Insurance: How Insurance Companies Act as “Compliance Managers” for Businesses

2018 ◽  
Vol 43 (02) ◽  
pp. 417-440 ◽  
Author(s):  
Shauhin A. Talesh
Keyword(s):  
Risk Management ◽  
Cyber Security ◽  
Participant Observation ◽  
Legal Regulation ◽  
Insurance Companies ◽  
Organizational Sociology ◽  
Cyber Insurance ◽  
Privacy Laws ◽  
Cyber Risk ◽  
Management Services

While data theft and cyber risk are major threats facing organizations, existing research suggests that most organizations do not have sufficient protection to prevent data breaches, deal with notification responsibilities, and comply with privacy laws. This article explores how insurance companies play a critical, yet unrecognized, role in assisting organizations in complying with privacy laws and dealing with cyber theft. My analysis draws from and contributes to two literatures on organizational compliance: new institutional organizational sociology studies of how organizations respond to legal regulation and sociolegal insurance scholars' research on how institutions govern through risk. Through participant observation at conferences, interviews, and content analysis of insurer manuals and risk management services, my study highlights how insurers act as compliance managers for organizations dealing with cyber security threats. Well beyond pooling and transferring risk, insurance companies offer cyber insurance and unique risk management services that influence the ways organizations comply with privacy laws.

Cyber Risk Management with Risk Aware Cyber-Insurance in Blockchain Networks

2018 ◽  
Author(s):  
Shaohan Feng ◽  
Zehui Xiong ◽  
Dusit Niyato ◽  
Ping Wang ◽  
Shaun Shuxun Wang ◽  
...  
Keyword(s):  
Risk Management ◽  
Cyber Insurance ◽  
Cyber Risk

scholarly journals Cyber insurance: the current situation and prospects of development

2020 ◽  
Vol 9 (28) ◽  
pp. 65-73
Author(s):  
Petro Kurmaiev ◽  
Liudmyla Seliverstova ◽  
Olena Bondarenko ◽  
Nataliia Husarevych
Keyword(s):  
Correlation Analysis ◽  
Insurance Market ◽  
Insurance Companies ◽  
Negative Effects ◽  
Cyber Insurance ◽  
Single Standard ◽  
Business Entities ◽  
High Level ◽  
Risk Insurance ◽  
Cyber Risk

The aim of the article is to analyze current trends in the development of cyber insurance. The following methods of scientific research were used in the preparation of the article: generalization, correlation analysis, comparative analysis. The authors analyze in detail the main trends in the spread of cybercrime. The correlation analysis between the number of registered cybercrimes in a particular country and its GDP, the number of business entities, indicated the lack of correlation between the studied indicators. It states that the most common types of cybercrime are: hacking, unauthorized access, accidental exposure, insider and physical theft. The sectoral analysis of the distribution of cybercrime has revealed a decrease in the share of financial companies while increasing the share of health care companies. It is noted that cyber insurance is one of the effective preventive measures that minimize the negative effects of cybercrime intervention. The article presents segmentation of the cyber insurance market by geography and size of insurance companies. The results of the analysis showed the dominance of US companies in the cyber insurance market. It is stated that the sectoral distribution of cybersecurity policy purchasers in general follows the trends of the sectoral distribution of cybercrime. The volume of cyber insurance, expenses of insured legal entities is analyzed. The main trends in the development of cyber insurance have been identified. The factors that hold back the development of cyber risk insurance have been identified. The main ones include the following: high level of information entropy in the process of cyber risk assessment, lack of a single standard for filling insurance services in the field of cyber insurance. It is noted that in the medium term the cyber insurance market is prospective for insurance companies. This is caused by the increasing scale of cyber threats and the costs associated with cyberattacks.

scholarly journals Optimal Investment in Cyber-Security under Cyber Insurance for a Multi-Branch Firm

Risks ◽  
2021 ◽  
Vol 9 (1) ◽  
pp. 24
Author(s):  
Alessandro Mazzoccoli ◽  
Maurizio Naldi
Keyword(s):  
Risk Management ◽  
Cyber Security ◽  
Management Strategies ◽  
Limited Liability ◽  
Optimal Investment ◽  
Cyber Insurance ◽  
Risk Management Strategies ◽  
Cyber Risk ◽  
Investment Choices ◽  
Very High

Investments in security and cyber-insurance are two cyber-risk management strategies that can be employed together to optimize the overall security expense. In this paper, we provide a closed form for the optimal investment under a full set of insurance liability scenarios (full liability, limited liability, and limited liability with deductibles) when we consider a multi-branch firm with correlated vulnerability. The insurance component results to be the major expense. It ends up being the only recommended approach (i.e., setting zero investments in security) when the intrinsic vulnerability is either very low or very high. We also study the robustness of the investment choices when our knowledge of vulnerability and correlation is uncertain, concluding that the uncertainty induced on investment by either uncertain correlation or uncertain vulnerability is not significant.

How Do I Embed Cyber Risk Management in All Aspects of the Organization?

2021 ◽  
pp. 160-172
Author(s):  
Gregory Falco ◽  
Eric Rosenbach
Keyword(s):  
Risk Management ◽  
Real World ◽  
Mitigation Measures ◽  
Critical Systems ◽  
The Real ◽  
Cyber Insurance ◽  
Risk Framework ◽  
Strategic Goals ◽  
Cyber Risk

The question “How do I embed cyber risk management in all aspects of the organization?” addresses how to adopt an Embedded Endurance cyber risk strategy in your day-to-day work as a cyber leader. The chapter begins with a case study about the NotPetya cyberattack, which highlights ongoing challenges in cyber insurance and illuminates the need for embedding cyber mitigation measures across all prioritized critical systems, networks, and data. The chapter describes how to develop an Embedded Endurance cyber risk strategy that is customized for your organization. This chapter walks readers through the key elements of a cyber strategy, from start to finish. This includes defining a risk framework, setting strategic goals, identifying metrics, and establishing strong leadership. The chapter concludes with experiences highlighting the real-world importance of an Embedded Endurance cyber risk strategy from Rosenbach and Falco.

scholarly journals РОЛЬ КІБЕРСТРАХУВАННЯ В СИСТЕМІ РИЗИК-МЕНЕДЖМЕНТУ БАНКІВСЬКИХ УСТАНОВ

2020 ◽  
pp. 183-196
Author(s):  
Maksym Dubyna ◽  
Iryna Serediuk ◽  
Natalia Bilous
Keyword(s):  
Control Systems ◽  
Internal Control ◽  
Cyber Attacks ◽  
Insurance Companies ◽  
Cyber Insurance ◽  
Current Trends ◽  
Banking Institutions ◽  
Risk Insurance ◽  
Cyber Risk

Within the article, the role of cyber insurance in the development of risk management systems of banking institutions is researched, namely, the essence of this system is specified, conditions of cyber risks and their potential for threats to banking institutions are identified. Considerable attention is paid to the analysis of the consequences and actions of cyber attacks in the activities of these institutions, the essence of cyber insurance as a method of minimizing losses from such influences is studied, peculiarities of providing cyber risk insurance services by insurance companies to commercial banks are specified. In addition, current trends as for the costs of organizations to take measures to ensure their own cybersecurity and purchase of appropriate insurance products are revealed, measures to improve security of banking institutions based on improving their internal control systems and financial security are specified.

Cyber Risk. The New Enemy for Risk Management in the Age of Globalisation

2018 ◽  
pp. 135-155 ◽  
Author(s):  
Chiara Crovini ◽  
Giovanni Ossola ◽  
Pier Luigi Marchini
Keyword(s):  
Risk Management ◽  
Cyber Risk
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