2014 Centennial Celebration and Annual Meeting
A Risk Like No Other: What You Should Know About Cyber Threats
Cyber is an area where national security, crime and insurance issues are often intertwined and interdependent. Government policies and actions can affect industry exposure to cyber risk to a much greater degree than for most of the other types of risk we analyze. While subject to important legal constraints and natural limitations, the impact of such government actions on the private sector can be very significant. In (a) actuarial analysis of cyber risk, (b) its quantitative modeling and qualitative assessment, and (c) the development of appropriate corporate risk governance, we have to take into account the effect of government actions, industry initiatives, and public–private partnerships.
This interactive session will cover some of the fundamentals of cyber risk, the unique challenges it presents, and ways to analyze it. The speakers will discuss the work by the U.S. Department of Homeland Security, the FBI, and NIST to improve our capabilities for defending against malicious cyber activity, in particular where the critical infrastructure is concerned. Cyber risk exposure of the insurance and other industries is expected to be an important part of the conversation and include the discussion of traditional actuarial and other data science approaches to cyber risk analysis. This includes quantifying the significantly greater cyber risk assumed by the insurance companies underwriting cyber insurance.