Studies from RISE Research Institutes of Sweden in the Area of Risk Management Described (It Service Outage Cost: Case Study and Implications for Cyber Insurance)

2020 AUG 31 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Investigators discuss new findings in Risk Management. According to news reporting out of Kista, Sweden, by NewsRx editors, the research stated, “Today, almost all enterprises are highly dependent on IT services. Thus, high availability IT services and the cost of downtime have received a lot of attention in recent years.”

Financial support for this research came from Swedish Civil Contingencies Agency, MSB.

Our news journalists obtained a quote from the research from the RISE Research Institutes of Sweden, “One increasingly used tool for cyber risk management and transfer is cyber insurance, which typically offers some form of business interruption coverage. However, cost structures of IT service outages are still poorly understood, as costs are often just reported as lump sums. This article contributes a multiple case study of IT service outage cost in three sectors in Sweden: transport companies (N = 11), food companies (N = 9) and government agencies (N = 19). The contribution is three-fold: (i) the measurement instrument itself, (ii) the insights into different cost structures gained, and (iii) the implications of different cost structures on availability investment strategies. Whereas some enterprises incur only a fixed outage cost, some incur (almost) only lost productivity or almost only lost revenue. In the public sector, lost revenue is often negligible.”

According to the news editors, the research concluded: “The results are further contextualised by a discussion of cyber insurance implications.”

For more information on this research see: It Service Outage Cost: Case Study and Implications for Cyber Insurance. The Geneva Papers on Risk and Insurance Issues and Practice, 2020;():. The Geneva Papers on Risk and Insurance Issues and Practice can be contacted at: Palgrave Macmillan Ltd, Brunel Rd Bldg, Houndmills, Basingstoke RG21 6XS, Hants, England.

Our news journalists report that additional information may be obtained by contacting Ulrik Franke, RISE Research Institutes of Sweden, Pob 1263, S-16429 Kista, Sweden.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1057/s41288-020-00177-4. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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