1 / 5

Unraveling Cyber Risk Contagion: Insights and Strategies for Management

Explore Wang's (2018) research on cyber risk contagion, including refined definitions, case studies, and a two-step analysis approach. Learn about cluster analysis and factor copulas, with implications for insurance and enterprise management.

rockwood
Download Presentation

Unraveling Cyber Risk Contagion: Insights and Strategies for Management

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Discussion on Exploring Cyber Risk Contagion – A Boundless Threat (Wang, 2018) Ruo (Alex) Jia Department of Risk Management and Insurance, School of Economics, Peking University 5th MRS Seminar, Oct 21, 2018

  2. Summary • Very well written and easy to read • Refined definition of cyber risk with contagion • An overview of the cyber risk history may also be a contribution • A quarter of cyber risk events affects more than one firm • A two-step approach to analyze the contagion risk • Cluster analysis • Factor copulas approach • An interesting case study on Target vs. Home Depot data breach

  3. Major comments • 1. Sample identification strategy • Describe a picture of cyber risk • Or use cyber risk as a case to examine contagion risk • Or look at only the cyber risks exposed to contagion risk? • 2. Data to apply the two-step model • The cluster analysis is based on portfolio of cyber risk events • The factor copulas approach is only demonstrated in a two-firm case • 3. Business/management implications • Implication to the insurability of cyber risk and to the insurance underwriting about cyber risk • For enterprises and/or for insurers?

  4. Major comments • 4. More interesting to know the differences and determinants of contagion risks among clusters • Different clusters have the same contagion risks or different risks and why? • Why is the contagion risk larger within cluster? Which factor makes this effect stronger? • 5. Motivation • Insurance companies are usually quite experienced to deal with the Cat events while risks are contagious • One of the reasons that we know little about cyber risk is that the risk is uninsured

  5. Minor Comments • 1. Eling and Schnell (2018) on the loss distribution of cyber risk • 2. Summary of specific conclusions • 3. Term consistency: systemic risk vs. contagion risk • 4. Panel C, Table 5, first year of event? • 5. Table 8 might be integrated into Table 7 or embeded in texts • 6. Interpretation of the copula correlation of 0.758

More Related