Cyber Risk Measurement and Management
This book on cyber risk measurement and management collects peer-reviewed contributions presented at the Halloween Conference on Cyber Risk: Measurement and Management (CRIMM 2024), held on October 29-31, 2024, in Bologna, Italy. Cyber risk, together with climate change and geopolitical risk, belongs to the category of emerging risks that represent new challenges for the safety assessment of corporations, the financial system, the economy as a whole, and sustainable development.
Reflecting the conference motto, this volume is devoted to the analysis and discussion of frontier issues concerning the quantitative aspects of cyber risk and its impact on the financial landscape. It is divided into two parts, corresponding to the two main stages of risk analysis: measurement and management. The first part addresses the mathematical and quantitative aspects of financial cyber risk management, including the mathematics of networks, the economics of optimal investment in security, and the actuarial mathematics of cyber insurance. The second part deals with risk management issues related to the characterization of this type of risk, such as the data sources available for measuring its probability and severity, the risk measures that can be applied and computed, and its potentially systemic nature, which may make cyber risk uninsurable.
This book will appeal to a broad and diverse readership, including researchers and practitioners in financial and cyber risk management and insurance, as well as regulators and public authorities.
Umberto Cherubini is a Professor of Financial Mathematics at the University of Bologna, Italy, which he joined in 1998, after spending ten years in the financial industry. His main research and teaching fields comprise quantitative finance and risk measurement. His main publications focus on derivative pricing, multivariate risk, and copula functions.
Michele Colajanni is a Full Professor at the Department of Computer Science and Engineering at the University of Bologna, Italy. He is also affiliated with the Bologna Business School and the Johns Hopkins University SAIS Europe. His research interests include cybersecurity, cyber risk management, and the design and evaluation of scalable and resilient services. He has designed and directed courses and master’s programs for universities, ministries, and companies. He has led several competitive research projects.
Daniele Tantari is a Professor of Mathematical Physics at the University of Bologna, Italy. His main research and teaching fields comprise the statistical mechanics of complex systems, encompassing a wide range of applications across disciplines such as financial data science, risk management, network security, machine learning, and biology. He has led several competitive research projects in these fields.