Digital Asset Valuation and Cyber Risk Measurement: Principles of Cybernomics

Cyber Risk Measurement and Management: An Introduction to Cybernomics examines the indispensable role of economic modeling in the future of digitization, thus providing industry professionals with the tools they need to optimize the management of financial risks associated with this mega trend. The book addresses three problem areas: the 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 book includes value, risk, control and cost, each of which are viewed from the perspective of entity, portfolio and global ramifications.

Highlights cutting-edge risk management practices regarding 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 risk

1. Digital Assets as Economic Goods 2. Digital Theory of Value 3. Cyber Risk Management: A New Era of Enterprise Risk Management 4. Cyber Risk Measurement in the Hyperconnected World 5. Economic Modelling and the Implementation of Effective Mitigating Controls 6. The Point of Diminishing Return on Cyber Risk Investment 7. Kilogram of Cyber Risk: Introducing BM and hekla 8. Three Views of Cybernomics: Entity View, Portfolio View, and Global View 9. Principles of Cybernomics 10. Case Study: Insuring the Future of Everything