an:07224355
Zbl 1459.94162
Nie, Ciyu; Li, Jingchao; Wang, Shaun
Modeling the effect of spending on cyber security by using surplus process
EN
Math. Probl. Eng. 2020, Article ID 3239591, 10 p. (2020).
00450504
2020
j
94A62 91G05 62P05 60K10
Summary: In this paper, we assume the security level of a system is a quantifiable metric and apply the insurance company ruin theory in assessing the defense failure frequencies. The current security level of an information system can be viewed as the initial insurer surplus; defense investment can be viewed as premium income resulting in an increase in the security level; cyberattack arrivals follow a Poisson process, and the impact of attacks is modeled as losses on the security level. The occurrence of cyber breach is modeled as a ruin event. We use this framework to determine optimal investment in cyber security that minimizes the total cyber costs. We show by numerical examples that there is an optimal allocation of total cyber security budget to (1) IT security maintenance/upkeep spending versus (2) external cyber risk transfer.