Cyber Risk Modeling A Huge Challenge

Wednesday, December 24th, 2014 Liability Risk Management Technology

Even as the Sony Corp cyber attack laid bare the kinds of vulnerabilities that typically drive companies to buy insurance policies, the lack of a risk model for insurers means such protection is not always easy to get. Unlike earthquakes, tornadoes or even terrorism, there are no existing models to calculate how much a so-called "cyber hurricane," cutting across a swath of companies, could cost. Without that, insurers cannot be sure how much risk they can afford to underwrite.

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http://www.reuters.com/article/2014/12/22/sony-cybersecurity-insurance-idUSL1N0U32F720141222

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