Exact Insurance Premiums for Cyber Risk of Small and Medium-Sized Enterprises


In this talk, we present a dynamic structural model of aggregate loss distribution for cyber risk of small and medium-sized enterprises. Here, we define a tree-based local-area network topology that consists of the combination of a Poisson process, homogeneous random trees, bidirectional bond percolation processes, and a cost topology. As a result, this leads us to obtain exact expressions for both the mean and variance of the aggregate loss. To highlight the utility of the model, we present an interesting application of network security and cyber insurance pricing.


Stochastic Modeling Seminar 
Friday, January 27, 2023
WXLR 307 and virtual via Zoom 
11:00 am MST/AZ

Please contact John Fricks (jfricks@asu.edu) for zoom information


Stefano Chiaradonna
School of Mathematical and Statistical Sciences
Arizona State University

WXLR 307 and Virtual via Zoom