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Measures of Resilience to Cyber Contagion -- An Axiomatic Approach for Complex Systems

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  • Gregor Svindland
  • Alexander Vo{ss}

Abstract

We introduce a novel class of risk measures designed for the management of systemic risk in networks. In contrast to prevailing approaches, these risk measures target the topological configuration of the network in order to mitigate the propagation risk of contagious threats. While our discussion primarily revolves around the management of systemic cyber risks in digital networks, we concurrently draw parallels to risk management of other complex systems where analogous approaches may be adequate.

Suggested Citation

  • Gregor Svindland & Alexander Vo{ss}, 2023. "Measures of Resilience to Cyber Contagion -- An Axiomatic Approach for Complex Systems," Papers 2312.13884, arXiv.org, revised Feb 2024.
    • Handle: RePEc:arx:papers:2312.13884
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    References listed on IDEAS

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    6. Hans Föllmer & Stefan Weber, 2015. "The Axiomatic Approach to Risk Measures for Capital Determination," Annual Review of Financial Economics, Annual Reviews, vol. 7(1), pages 301-337, December.
    7. Axel Gandy & Luitgard A. M. Veraart, 2017. "A Bayesian Methodology for Systemic Risk Assessment in Financial Networks," Management Science, INFORMS, vol. 63(12), pages 4428-4446, December.
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