Study Results from Stanford University in the Area of Risk Management Reported (Cyber Risk Management for Critical Infrastructure: A Risk Analysis…

Insurance Weekly News

Study Results from Stanford University in the Area of Risk Management Reported (Cyber Risk Management for Critical Infrastructure: A Risk Analysis Model and Three Case Studies)

By a News Reporter-Staff News Editor at Insurance Weekly News -- Researchers detail new data in Risk Management. According to news reporting out of Stanford, California, by VerticalNews editors, research stated, "Managing cyber security in an organization involves allocating the protection budget across a spectrum of possible options. This requires assessing the benefits and the costs of these options."

Financial supporters for this research include National Aeronautics and Space Administration, Jet Propulsion Laboratory, U.S. Department of Defense, Burt and Deedee McMurtry graduate student fellowship.

Our news journalists obtained a quote from the research from Stanford University, "The risk analyses presented here are statistical when relevant data are available, and system-based for high-consequence events that have not happened yet. This article presents, first, a general probabilistic risk analysis framework for cyber security in an organization to be specified. It then describes three examples of forward-looking analyses motivated by recent cyber attacks. The first one is the statistical analysis of an actual database, extended at the upper end of the loss distribution by a Bayesian analysis of possible, high-consequence attack scenarios that may happen in the future. The second is a systems analysis of cyber risks for a smart, connected electric grid, showing that there is an optimal level of connectivity. The third is an analysis of sequential decisions to upgrade the software of an existing cyber security system or to adopt a new one to stay ahead of adversaries trying to find their way in."

According to the news editors, the research concluded: "The results are distributions of losses to cyber attacks, with and without some considered countermeasures in support of risk management decisions based both on past data and anticipated incidents."

For more information on this research see: Cyber Risk Management for Critical Infrastructure: A Risk Analysis Model and Three Case Studies. Risk Analysis, 2017;():. (Wiley-Blackwell - www.wiley.com/; Risk Analysis - onlinelibrary.wiley.com/journal/10.1111/(ISSN)1539-6924)

Our news journalists report that additional information may be obtained by contacting M.E. Pate-Cornell, Dept. of Management Science and Engineering, Stanford University, Stanford, CA, United States. Additional authors for this research include M. Kuypers, M. Smith and P. Keller.

Keywords for this news article include: Stanford, California, Legal Issues, United States, Risk Management, North and Central America.