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Title: Modeling the effect of spending on cyber security by using surplus process
Authors: Nie, Ciyu 
Li, Jingchao
Wang, Shaun
Keywords: Engineering::Mathematics and analysis
Issue Date: 2020
Source: Nie, C., Li, J., & Wang, S. (2020). Modeling the effect of spending on cyber security by using surplus process. Mathematical Problems in Engineering, 2020, 3239591-. doi:10.1155/2020/3239591
Journal: Mathematical Problems in Engineering
Abstract: 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.
ISSN: 1024-123X
DOI: 10.1155/2020/3239591
Rights: © 2020 Ciyu Nie et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Fulltext Permission: open
Fulltext Availability: With Fulltext
Appears in Collections:NBS Journal Articles

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