Findings from University of Rome Tor Vergata Advance Knowledge in Risk Management (Optimal Investment in Cyber-Security under Cyber Insurance for a Multi-Branch Firm)

2021 JAN 22 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Fresh data on insurance are presented in a new report. According to news reporting out of Rome, Italy, by NewsRx editors, research stated, “Investments in security and cyber-insurance are two cyber-risk management strategies that can be employed together to optimize the overall security expense.”

Our news reporters obtained a quote from the research from University of Rome Tor Vergata: “In this paper, we provide a closed form for the optimal investment under a full set of insurance liability scenarios (full liability, limited liability, and limited liability with deductibles) when we consider a multi-branch firm with correlated vulnerability. The insurance component results to be the major expense. It ends up being the only recommended approach (i.e., setting zero investments in security) when the intrinsic vulnerability is either very low or very high.”

According to the news editors, the research concluded: “We also study the robustness of the investment choices when our knowledge of vulnerability and correlation is uncertain, concluding that the uncertainty induced on investment by either uncertain correlation or uncertain vulnerability is not significant.”

For more information on this research see: Optimal Investment in Cyber-Security under Cyber Insurance for a Multi-Branch Firm. Risks, 2021,9(24):24. (Risks - http://www.mdpi.com/journal/risks). The publisher for Risks is MDPI AG.

A free version of this journal article is available at https://doi.org/10.3390/risks9010024.

Our news journalists report that more information may be obtained by contacting Alessandro Mazzoccoli, Department of Civil Engineering and Computer Science, University of Rome Tor Vergata, Via del Politecnico 1, 00133 Rome, Italy. Additional authors for this research include Maurizio Naldi.

(Our reports deliver fact-based news of research and discoveries from around the world.)