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Abstract
This paper provides a framework actuaries can use to think about cyber risk. We propose a differentiated view of 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.
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Cite it as
@phdthesis{bhme2019fundamental,
title = {A Fundamental Approach to Cyber Risk Analysis},
author = {Rainer Bhme and Stefan Laube and Markus Riek},
year = {2019},
journal = {Variance},
volume = {12},
number = {2},
doi = {10.66573/001c.120742},
}