Date of Award

3-24-2016

Document Type

Thesis

Degree Name

Master of Science

Department

Department of Electrical and Computer Engineering

First Advisor

Mason Rice, PhD.

Abstract

Critical infrastructure owners and operators want to minimize their cyber risk and expenditures on cybersecurity. The insurance industry has been quantitatively assessing risk for hundreds of years in order to minimize risk and maximize profits. To achieve these goals, insurers continuously gather statistical data to improve their predictions, incentivize their clients' investment in self-protection and periodically refine their models to improve the accuracy of risk estimates. This paper presents a framework which incorporates the operating principles of the insurance industry in order to provide quantitative estimates of cyber risk. The framework implements optimization techniques to suggest levels of investment for both cybersecurity and insurance for critical infrastructure owners and operators. This analysis can be used to quantitatively formulate strategies to minimize cyber risk.

AFIT Designator

AFIT-ENG-MS-16-M-055

DTIC Accession Number

Pending

Share

COinS