UW-Milwaukee Department of Mathematical Sciences presents,
Dr. Maochao Xu;
Department of Mathematics
Illinois State University
Friday November 6, 2015
2:00pm in EMS E495
**Light Refreshments will be served beginning at 1:30pm in EMS E424A**
Cybersecurity Insurance: Modeling and Pricing
Cybersecurity has become a problem that is threatening the economy, human privacy, and even national security. The cybersecurity insurance, which is designed to mitigate losses from a variety of cyber incidents, including data breaches, business interruption, and network damage, has received much attention recently. However, the contributions to modeling the cybersecurity risk in the literature are largely descriptive, which is mainly because the cyber risk is very different from the traditional financial risks. The significant property that distinguishes cyber risk from the conventional risk is that information and communication technology resources are interconnected in a network, and therefore the analysis of risk and its related potential losses needs to take into the network topology.
In this talk, I will discuss the challenges in modeling the cybersecurity risks including the high-dimensional dependence, and cyber epidemic spreading. The pricing strategy for the insurance companies based on the proposed epidemic spreading model and related simulation will be presented as well.