Cyber Risk Measurement and Management: An Introduction to Cybernomics examines the indispensable role of economic modeling in the future of digitization to prepare industry for optimizing the management of financial risks associated with this mega trend. It addresses three problem areas: valuation of digital assets, quantification of risk exposures of digital valuables and economic modeling for the management of such risks. Employing a novel cyber risk measurement unit, the solution framework includes value, risk, control and cost and is considered from three views: entity, portfolio and global. The solution framework is built around cyber risk measurement units defined in this book.

Brings cutting-edge risk management practices to bear to the topic of cyber security risk mitigationFocuses on topics such as insurance, ISO standards and supply chain vulnerabilitiesPresents a model to convert domain-based control assessments to scenario-based control assessmentsEstimates costs of improvements to strengthen control effectiveness against a given scenarioApplies classic risk management options (risk acceptance, risk avoidance, risk mitigation and risk transfer) to cyber riskProvides detailed analyses of capital allocations