New Findings in Risk Management Described from Roma Tre University (Optimal Cyber Security Investment in a Mixed Risk Management Framework: Examining the Role of Cyber Insurance and Expenditure Analysis): Insurance – Risk Management

NewsRx Policy and Law Daily

2023 SEP 08 (NewsRx) -- By a News Reporter-Staff News Editor at NewsRx Policy and Law Daily -- New study results on risk management have been published. According to news originating from Rome, Italy, by NewsRx correspondents, research stated, “Cyber security importance has escalated globally, driven by its pivotal role in shaping daily life, encompassing both personal and non-personal aspects.”

Our news journalists obtained a quote from the research from Roma Tre University: “Cyber security breach probability functions play a crucial role in comprehending how cyber security investments affect vulnerability to cyber attacks. These functions employ mathematical models to guide decision making in cyber risk management. Thus, studying and improving them is useful in this context. In particular, using these models, this article explores the effectiveness of an integrated risk management strategy that merges insurance and security investments, aiming to minimize overall security expenses. Within this strategy, security investments contribute to reducing the insurance premium. This research investigates the optimal investment for this blended approach under total insurance coverage.”

According to the news reporters, the research concluded: “When the integrated risk management strategy combining insurance and security investments is deemed the optimal choice, this paper reveals that the insurance premium tends to be the dominant component in the overall security expense in the majority of cases. This implies that the cost of insurance outweighs the cost of security investments.”

For more information on this research see: Optimal Cyber Security Investment in a Mixed Risk Management Framework: Examining the Role of Cyber Insurance and Expenditure Analysis. Risks, 2023,11(9). (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/risks11090154.

Our news editors report that additional information may be obtained by contacting Alessandro Mazzoccoli, Department of Economics, Roma Tre University, Via Silvio D’Amico 77, 00146 Rome, Italy.