Optimisation of cyber insurance coverage with selection of cost effective security controls.

Ganbayar Uuganbayar*, Artsiom Yautsiukhin, Fabio Martinelli, Fabio Massacci

*Corresponding author for this work

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

Nowadays, cyber threats are considered among the most dangerous risks by top management of enterprises. One way to deal with these risks is to insure them, but cyber insurance is still quite expensive. The insurance fee can be reduced if organisations improve their cyber security protection, i.e., reducing the insured risk. In other words, organisations need an investment strategy to decide the optimal amount of investments into cyber insurance and self-protection. In this work, we propose an approach to help a risk-averse organisation to distribute its cyber security investments in a cost-efficient way. What makes our approach unique is that next to defining the amount of investments in cyber insurance and self-protection, our proposal also explicitly defines how these investments should be spent by selecting the most cost-efficient security controls. Moreover, we provide an exact algorithm for the control selection problem considering several threats at the same time and compare this algorithm with other approximate algorithmic solutions.

Original languageEnglish
Article number102121
Pages (from-to)1-21
Number of pages21
JournalComputers and Security
Volume101
Early online date27 Nov 2020
DOIs
Publication statusE-pub ahead of print - 27 Nov 2020

Keywords

  • Cyber insurance
  • Dynamic programming
  • Genetic algorithm
  • Risk management
  • Risk treatment
  • Security investment

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