Abstract

The paper proposes a new methodology to measure cyber risks which, instead of using quantitative loss data, often not available, employs ordinal data. The method relies on the construction of a criticality index, whose properties are discussed and compared with alternative measures employed in operational risk measurement. The methodology is illustrated on data regarding cyber attacks collected at the worldwide level.Theproposedmeasureisfoundtobequiteeffectivetorankcyberrisktypes.Thus, from a policy perspective, it can be useful to guide the implementation of preventive actions.
Original languageEnglish
Pages (from-to)1-13
Number of pages13
JournalSTATISTICAL METHODS & APPLICATIONS
DOIs
Publication statusPublished - 2019

Keywords

  • Criticality index
  • Cyber attacks
  • Operational risk
  • Ordinal data modelling

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