Modeling the effect of spending on cyber security by using surplus process

• Main Authors: Nie, Ciyu, Li, Jingchao, Wang, Shaun
• Other Authors: Nanyang Business School
• Format: Article
• Language: English
• Published: 2020
• Subjects: Engineering::Mathematics and analysis; Budget Control; Insurance
• Online Access: https://hdl.handle.net/10356/145254
• Institution: Nanyang Technological University

In this paper, we assume the security level of a system is a quantifiable metric and apply the insurance company ruin theory in assessing the defense failure frequencies. The current security level of an information system can be viewed as the initial insurer surplus; defense investment can be viewe...