Risk Management of Silent Cyber Risks in Consideration of Emerging Risks

Abstract

In recent years, new cyber attacks such as targeted attacks have caused extensive damage. With the continuing development of the IoT society, various devices are now connected to the network and are being used for various purposes. The Internet of Things has the potential to link cyber risks to actual property damage, as cyberspace risks are connected to physical space. With this increase in unknown cyber risks, the demand for cyber insurance is increasing. One of the most serious emerging risks is the silent cyber risk, and it is likely to increase in the future. However, at present, security measures against silent cyber risks are insufficient. In this study, we conducted a risk management of silent cyber risk for organizations with the objective of contributing to the development of risk management methods for new cyber risks that are expected to increase in the future. Specifically, we modeled silent cyber risk by focusing on state transitions to different risks. We newly defined two types of silent cyber risk, namely, Alteration risk and Combination risk, and conducted risk assessment. Our assessment identified 23 risk factors, and after analyzing them, we found that all of them were classified as Risk Transference. We clarified that the most effective risk countermeasure for Alteration risk was insurance and for Combination risk was measures to reduce the impact of the risk factors themselves. Our evaluation showed that the silent cyber risk could be reduced by about 50%, thus demonstrating the effectiveness of the proposed countermeasures.