Cyber Risk in Economics and Finance

Abstract

The 21st century is booming with the progress in technology and the expansion of the virtual world. The fast development and adoption of Internet-based computer systems have left their users in misconception concerning the various risks associated with online networks. It is only recently that cyber risk has started to be seen as the serious threat that it is, which in turn reflects on the growing amount of research on the topic. In the aim of improving cybersecurity, the role of research is essential, as it raises awareness and contributes to a good breeding ground for cyber safety development. This thesis treats cyber risk through economic and financial aspects, and provides a review of the recent literature in the context of cyber risk. In particular, it discusses the part of cyber insurance in managing Internet risks, as well as the econometric frameworks introduced in previous studies to model cyber risk.