Risk management using cyber-threat information sharing and cyber-insurance

Abstract

Critical infrastructure systems spanning from transportation to nuclear operations are vulnerable to cyber attacks. Cyber-insurance and cyber-threat information sharing are two prominent mechanisms to defend cybersecurity issues proactively. However, standardization and realization of these choices have many bottlenecks. In this paper, we discuss the benefits and importance of cybersecurity information sharing and cyber-insurance in the current cyber-warfare situation. We model a standard game theoretic participation model for cybersecurity information exchange (CYBEX) and discuss the applicability of economic tools in addressing important issues related to CYBEX and cyber-insurance. We also pose several open research challenges, which need to be addressed for developing a robust cyber-risk management capability.