Cyber Risk Research Articles

Cybersecurity vulnerability and resilience of cooperative driving automation for energy efficiency and flow stability in smart cities

Increasing levels of communication and automation has led to the development of cyber physical systems applications known as cooperative driving automation. While such applications provide enormous benefits in improving transportation systems operation and environmental sustainability, they also introduce new risks to smart cities. These systems provide wider access to adversaries and increase the attack surface to compromise the operation of smart cities. This study develops a vehicle to infrastructure (V2I) based cooperative driving automation platform to understand and analyze the cyber risks in these systems from a V2I perspective in a representative traffic environment. Three cyberattacks (Fake BSMs, replay and denial of service) were emulated as a cooperative game to assess the impact on volatility, energy efficiency and traffic flow stability. The critical nature of cooperative driving automation is revealed by this research and flow stability, and energy efficiency of cooperative driving automation are severely impacted by the three categories of cyberattacks. Further, a 35 %-40 % increase in volatility in acceleration-deceleration regimes along with 20 % increase in emission is observed as opposed to the baseline case with no cyberattacks. The proposed long-short term memory neural networks (LSTM) showed an average detection accuracy of around 98 % for the analyzed cyberattacks. The research findings would foster the development of algorithms to continuously monitor the state of cooperative automated driving environment for anomalous behavior and promote resilient and environmentally sustainable cities in the future.

Recalibrating the scope of financial inclusion through financial technologies in the digital age: the role of digital literacy as a moderator in rural Uganda

PurposeThe main purpose of this study is to test for the interaction effect of digital literacy in the relationship between financial technologies (FinTechs) of biometrics and mobile money and digital financial inclusion among the unbanked poor women, youth and persons with disabilities (PWDs) in rural Uganda.Design/methodology/approachCovariance-based structural equation modeling was used to construct the interaction effect using data collected from the unbanked poor women, youth and PWDs located in the four regions in Uganda as prescribed by Hair et al. (2022).FindingsThe findings from this study are threefold: first; the results revealed a positive interaction effect of digital literacy between FinTechs of biometrics and mobile money and digital financial inclusion. Second; the results also confirmed that biometrics identification positively promotes digital financial inclusion. Lastly; the results showed that mobile money positively promotes digital financial inclusion. A combination of FinTechs of biometrics and mobile money together with digital literacy explain 29% variation in digital financial inclusion among the unbanked poor women, youth and PWDs in rural Uganda.Research limitations/implicationsThe data for this study were collected mainly from the unbanked poor women, youth and PWDs. Further studies may look at data from other sections of the vulnerable population in under developed financial markets. Additionally, the data for this study were collected only from Uganda as a developing country. Thus, more data may be obtained from other developing countries to draw conclusive and generalized empirical evidence. Besides, the current study used cross sectional design to collect the data. Therefore, future studies may adopt longitudinal research design to investigate the impact of FinTechs on digital financial inclusion in the presence of digital literacy across different time range.Practical implicationsThe governments in developing countries like Uganda should support women, youth, PWDs and other equally vulnerable groups, especially in the rural communities to understand and use FinTechs. This can be achieved through digital literacy that can help them to embrace digital financial services and competently navigate and perform digital transactions over digital platforms like mobile money without making errors. Besides, governments in developing countries like Uganda can use this finding to advocate for the design of appropriate digital infrastructures to reach remote areas and ensure “last mile connectivity for digital financial services' users.” The use of off-line solutions can complement the absence or loss of on-line network connectivity for biometrics and mobile money to close the huge digital divide gap in rural areas. This can scale-up access to and use of financial services by the unbanked rural population.Originality/valueThis paper sheds more light on the importance of digital literacy in the ever complex and dynamic global FinTech ecosystem in the presence of rampant cyber risks. To the best of the authors' knowledge, limited studies currently exist that integrate digital literacy as a moderator in the relationship between FinTechs and digital financial inclusion, especially among vulnerable groups in under-developed digital financial markets in developing countries. This is the novelty of the paper with data obtained from the unbanked poor women, youth and PWDs in rural Uganda.

Overview of Distributed Denial of Service (DDoS) attack types and mitigation methods

In the evolving landscape of cyber threats, Distributed Denial of Service (DDoS) attacks pose a significant challenge to internet security. This research provides a comprehensive overview of various DDoS attack types and explores the efficacy of current mitigation strategies and categorizes DDoS attacks based on their methods and targets, highlighting their unique characteristics and impacts. The study delves into a range of mitigation methods, from traditional network-based approaches to recent advancements in artificial intelligence, assessing their strengths and limitations. Key findings indicate a dynamic interplay between the evolving complexity of DDoS attacks and the advancement of mitigation techniques. The research identifies gaps in current strategies and suggests areas for further development, emphasizing the need for adaptive, multi-layered defense mechanisms. This scientific article aims to provide cybersecurity professionals with a nuanced understanding of DDoS threats and a critical evaluation of the mitigation methods, guiding effective strategies to combat these evolving cyber risks.

Classification of Cyber Risks for Sea Vessel’s Voyage Cycle

Modern digital transformation in the shipping industry Shipping 4.0 is accompanied by increased automation and autonomy of the ship. This means strengthening the digitization of the ship's navigation systems (cyber systems). Therefore, the safe operation and navigation of modern ships depends on the adequate operation of cyber-physical systems, which are created on the basis of information and operational technologies. Such interconnections of ship information systems inevitably increase the vulnerability of the ship's digital navigation infrastructure to cyber-attacks. The article examines methods of controlling cyber risks of various origins, which determine the priority of flows, their internal interconnection and relations with the sources of messages that form them. The formalization of the qualitative and quantitative properties of information flows of the voyage cycle using matrix and graph-analytical modeling methods has been carried out. A decomposition of information was built and a cluster of information security of ship maneuvering control was defined, with its access closed for cyber-attacks. In the event of cyber-attacks, it is very important for the navigator to determine the moment of it’s appearance and the state of navigational devices of the bridge. Usually, the working state of the device is determined by the presence of electric current in it. However, only the presence of current in the device during cyber-attacks is not enough to assess its working condition. Inspection and verification of 11 navigation devices on the bridge takes a lot of time, which the navigator does not have in the event of a cyber-attack. Therefore, we propose to introduce an additional function of controlling the working status of each navigational device, and to transmit the results of all devices to a separate navigation cluster Mk of the navigation bridge via shielded cable lines of the vessel without other methods. This will make it possible to gather information about all the devices in one place on the bridge, protect it from cyberattacks, and quickly determine the operating status of all the navigation devices on the bridge. Descriptive modeling of the meaningful categories of the information space of maritime routes during cyberattacks was performed. The proposed classification of cyber risks has a logical structure based on the grouping of message flows, using the cluster connection coefficient between them. This makes it possible to assess the criticality of the impact of cyber-attacks on the ship and to choose ways to reduce their impact on the maneuvering of the ship in the voyage cycle.

The Cyber Risk Premium

Cyber risk is an important emerging source of risk in the economy. To estimate its impact on the asset market, we use machine learning techniques to develop a firm-level measure of cyber risk. The measure aggregates information from a rich set of firm characteristics and shows superior ability to forecast future cyberattacks on individual firms. We find that firms with higher cyber risk earn higher average stock returns. When these firms underperform, cybersecurity experts tend to have higher concerns about cyber risk, and cybersecurity exchange-traded funds outperform. Further tests strengthen the identification of the cyber risk premium. This paper was accepted by William Cong, finance. Supplemental Material: The online appendix and data files are available at https://doi.org/10.1287/mnsc.2022.02056 .

Cybersecurity and executive compensation: Can inside debt-induced risk aversion improve cyber risk management effectiveness?

This study contributes to the emerging literature on the determinants and the consequences of cyberattacks by examining the impact of inside debt compensation on a firm's likelihood of experiencing a cyberattack and on attacked firms' cash holdings, R&D investments, and asset tangibility. We provide compelling evidence that inside debt compensation reduces the probability of experiencing a cyberattack. Furthermore, we document that high inside debt CEOs reduce their firm's cash holdings while they increase R&D investments and asset tangibility once their firms experience a hacking incident. These effects persist for three years after the attack. Our results are robust to alternative measurements of inside debt compensation and after accounting for potential sample selection and endogeneity concerns. Our findings underscore the importance of inside debt compensation as a governance mechanism that alleviates inefficiencies related to cybersecurity investments.

Securing SatCom user segment: A study on cybersecurity challenges in view of IRIS2

The advancement in communications technologies and recent geopolitical events highlighted the need for fast and reliable satellite communications infrastructure for military and civil security operations. Starting from the case study of the Viasat cyberattack in February 2022, this paper analyzes the common vulnerabilities of the ground and, in particular, user segments in SatCom infrastructures, focusing on modems security, and proposes some best practices and solutions in the field of risk management to prevent such attacks. Moreover, the research compares the standards and the guidelines used in the United States concerning routers and network security with those in the European Union. Our findings highlight the need for clear and effective standards or certification schemes to cyber-proof the new components of IRIS2, the “Infrastructure for Resilience Interconnectivity and Security by Satellite”, Europe's first multi-orbital satellite constellation. This need becomes more compelling, especially in view of the entry into force of the Network and Information Security Directive or NIS2 Directive. We conclude by discussing future research directions and emerging trends in cyber risk management for the SatCom user segment. This paper aims to provide valuable insights into managing cyber risks in critical space infrastructure and can inform future efforts to improve cybersecurity in view of IRIS2.

Bridging the cyber protection gap: An investigation into the efficacy of the German cyber insurance market

AbstractCybersecurity requires an effective risk transfer regime and a well‐functioning insurance market to improve stakeholder resilience. However, rapid cyber threat adaptation, limited data availability, and inadequate risk understanding pose significant challenges for the insurance industry and its customers. This research uses a mixed methods approach to analyze the inclusions, exclusions, and suitability of current cyber policies in the German cyber insurance market. The study analyzes 41 cyber insurance policies, representing about 80% of the German cyber insurance market. This examination is supported by semistructured interviews with 23 cyber insurance experts. The authors find that there are no standardized cyber policy wordings, and insurers use different terms and definitions in their insurance policies. Specifically, the results show a significant lack of clarity around coverages and exclusions. This research contributes to the cybersecurity risk management community and will enable businesses, insurance companies, and policymakers to better understand, measure, and manage cyber risk.

Theoretical and methodological approaches to the management of cyber security risks at critical infrastructure objects: response to cyber incidents and crisis managemen

The research is devoted to analyzing and developing theoretical and methodological recommendations for cybersecurity risk management at critical infrastructure facilities. The paper defines and describes the cyber risk management process, identifies cyber challenges, and considers the cyber risk management system. Recommendations include expanding cooperation, improving monitoring systems, staff training, legal regulation, and participation in international initiatives. These measures are aimed at improving the effectiveness of cyber risk management to ensure national security.

Management frameworks information technology and cyber risks during the digital transformation of the organization

Problem statement. It is necessary to effectively manage the implementation of digital security measures of an organization to ensure the cybersecurity of an information system in the context of digital transformation and minimize the risk of possible losses and security breaches. Goal. Perform a comprehensive analysis and benchmarking of frameworks in this area. Results. The main documents regulating cybersecurity and IT risks in digital transformation are analyzed, standard guidelines, recommendations and frameworks for information security and cybersecurity management are analyzed. System solutions for the development of a cyber and digital security strategy have been identified. Practical significance. A model of a cybersecurity and business continuity management system in the context of an organization's digital transformation is proposed. Recommendations for the organization's digital security management mechanism are described.

Pragmatic critical realism and Mixed methods in Inter-disciplinary Research—Management and Information systems

Mixed methods research traditionally follows one paradigm based on established typologies. However, this study deviates from conventional research paradigms by combining two paradigms in one study. Specifically, it employs a critical realist method to analyze data, complemented by a pragmatist approach. This combination allows for the exploration of various phenomena in multidisciplinary research, such as cyber risk management, which intersects with management and information systems. By delving into the causal mechanisms underlying observed social and organizational phenomena, the pragmatic critical realism (PCR) approach, in conjunction with mixed methods research (MMR), offers a valuable framework for understanding the study's findings. Importantly, PCR has not been widely discussed or adopted in a multidisciplinary context for examining mixed data and advancing theory using MMR. This approach can be applied to multidisciplinary research in different contexts, enabling a deeper understanding of research participants' perspectives, the observable events resulting from those perspectives, and their causal relationships. The study systematically reviews the literature on pragmatism and critical realism in the field of management and information system; compares and combines these two research paradigms to identify common ground and explore their potential for developing a new framework to address interdisciplinary research questions. As a result, a new multiparadigm conceptual model has been established that integrates pragmatism and critical realism, making an original contribution to the field of mixed methods research. The study suggests that academics and researchers in management and information systems should broaden their use of methodologies and embrace interdisciplinary thinking in order to advance theoretical debates within their discipline.

The Relationship between Cyber Risk Management and Digital Transformation. A Bibliometric Analysis

The Relationship between Cyber Risk Management and Digital Transformation. A Bibliometric Analysis

RAMA: a risk assessment solution for healthcare organizations

Recent cyber-attacks targeting healthcare organizations underscore the growing prevalence of the sector as a prime target for malicious activities. As healthcare systems manage and store sensitive personal health information, the imperative for robust cyber security and privacy protocols becomes increasingly evident. Consequently, healthcare institutions are compelled to actively address the intricate cyber security risks inherent in their digital ecosystems. In response, we present RAMA, a risk assessment solution designed to evaluate the security status of cyber systems within critical domain, such as the healthcare one. By leveraging RAMA, both local stakeholders, such as the hospital’s IT personnel, and global actors, including external parties, can assess their organization’s cyber risk profile. Notably, RAMA goes beyond risk quantification; it facilitates a comparative analysis by enabling organizations to measure their performance against average aggregated mean scores, fostering a culture of continuous improvement in cyber security practices. The practical efficacy of RAMA is demonstrated through its deployment across four real-world healthcare IT infrastructures. This study not only underscores the significance of addressing cyber security risks within healthcare but also highlights the value of innovative solutions like RAMA in safeguarding sensitive health information and enhancing the sector’s overall cyber resilience.

Continuous improvement in information security: A review of lessons from superannuation cybersecurity uplift programs

As organizations grapple with the escalating threat landscape in the digital age, the imperative for continuous improvement in information security has become paramount. This paper presents a comprehensive review of lessons learned from superannuation cybersecurity uplift programs, shedding light on the strategies, challenges, and successes encountered in the pursuit of enhanced information security. The study delves into the unique context of superannuation, where the safeguarding of sensitive financial and personal data is of utmost importance. By examining the evolution of cybersecurity uplift programs within this sector, the research identifies key factors that contribute to the success or failure of continuous improvement initiatives. These factors encompass technological advancements, regulatory compliance, organizational culture, and the dynamic nature of cyber threats. Through an analysis of real-world case studies and best practices, this paper synthesizes actionable insights for information security professionals seeking to fortify their defense mechanisms. The findings underscore the importance of adaptive strategies that evolve alongside emerging threats, emphasizing the need for a holistic approach that integrates people, processes, and technology. Furthermore, the review highlights the role of collaborative efforts within the industry, emphasizing the sharing of threat intelligence and collaborative learning as essential components of a resilient cybersecurity ecosystem. The paper concludes with a set of recommendations to guide organizations in the ongoing journey of continuous improvement, offering a roadmap for fortifying information security defenses in the face of evolving cyber risks.

Transformation of Crimes (Cybercrimes) in Digital Age

The cybercrime thrives, understanding its evolution is critical for security and policy interventions. This research profiles cyber threat trends since the 1950s alongside legal developments. Background examines early hacking cultures, antivirus innovations, and seminal cases that set precedents. The objectives encompass analyzing major technical and legal inflection points over recent decades regarding cybercrimes. The study's aim is validating escalating cyber risks that demand urgent attention. Doctrinal methodology leverages scholarly journals, case law, and industry data. Key findings reveal sophisticated social engineering tactics, gaps in legal deterrence frameworks, and infrastructure vulnerabilities that underscore needs for global cooperation. Recommendations center on proactive reforms to cybersecurity statutes, public awareness, and cross-border collaboration to mitigate emerging threats. Tracing cybercrime's timeline provides vital context to catalyze preemptive actions against potential attacks in an increasingly interconnected online ecosystem.

Findings from the Polish InsurTech market as a roadmap for regulators

The dynamic development of modern technologies has changed the rules of the game in the financial market, including the insurance sector. While introducing digital business models may bring certain advantages for insurers, there is a widespread expectation of consumers to manage their financial affairs anytime and anywhere. This article sets out by demonstrating recent phenomena on the insurance market arising from its digitalisation, i.e., automation, personalisation, insurance on-demand, machine learning & artificial intelligence, Big Data, concluding distance contracts; along with the threats to consumer safety they pose a cyber risk that may materialise at different stages of the digital insurance selling process. Further, to provide insights into how modern digital insurance markets work, the article presents the results of a study conducted by the authors on a representative sample of 2,136 respondents from Poland. The study allows one to identify certain behaviour patterns of customers in their dealings with providers of insurance products and services as well as their approach to technological innovations introduced by the traders. Crucially, the study shows that insurance consumers have a positive attitude towards the use of modern technologies in insurance, however, their knowledge on this subject is still limited. Specifically, insurance consumers tend to be more afraid of cyber risks than any legal risks resulting from deploying new technologies in the insurance sector. In conclusion, the article maps out key regulatory challenges related to ensuring consumer protection on digital insurance markets.

Bridging the Cyber–Physical Divide: A Novel Approach for Quantifying and Visualising the Cyber Risk of Physical Assets

Critical infrastructures and their physical assets are under increasing threat of cyber-attacks as technological integration creates cyber–physical systems (CPSs). This has led to an urgent need to better understand which physical assets in these systems are most at risk, but this requires crossing the divide between cyber and physical risk assessments. However, existing cyber-security methods generally focus solely on the vulnerabilities and security of the cyber network and efforts to quantify the impacts of these cyber vulnerabilities on physical assets are generally limited to the consideration of individual attacks, rather than system-wide risk assessments. Similarly, risk assessments of physical infrastructure systems generally ignore potential impacts due to cyber-attacks. To overcome this cyber–physical divide in risk assessment, we introduce a novel approach for assessing risk across this divide. The proposed approach assesses the cyber risk of physical assets as a function of the vulnerabilities of their connected cyber components, and the contribution of cyber components to this risk. The approach is demonstrated with a case study of the C-Town water distribution system. The results indicate that the approach shows a modified prioritisation of risk compared to that obtained using conventional cyber or physical assessments, highlighting the importance of considering the connection between cyber and physical components in risk assessments of critical infrastructure and their physical assets.

An evaluation of the impact of ChatGPT on network security

ChatGPT, a very advanced natural language generation model, represents a momentous paradigm shift inside the realm of the internet. ChatGPT, which was made available to the public by OpenAI on November 30, 2022, is an enhanced version of OpenAIs GPT-3.5 model. It has been further developed through the implementation of fine-tuning methods that combine both supervised and reinforcement learning approaches. Furthermore, it provides a client interface that is easy to use, allowing users to actively participate in interactive question-and-answer exchanges with the model. Nevertheless, the utilization of these chatbots likewise presents noteworthy cybersecurity concerns that necessitate attention. The primary objective of this research study is to examine the cyber dangers that are inherent in the utilization of ChatGPT and other comparable AI-driven chatbots. This investigation will encompass an analysis of potential vulnerabilities that may be susceptible to exploitation by individuals with malevolent intent. Additionally, the paper proposes strategies for mitigating the aforementioned cyber risks and vulnerabilities.

ECDIS Cyber Security Dynamics Analysis based on the Fuzzy-FUCOM Method

ECDIS is one of the most important pieces of navigational and information equipment on board ships, as well as a vital component of the ship's cyberspace. ECDIS has cyber vulnerabilities because of its connections to external systems like RADAR or GPS, sensors via serial (IEC61162-1/2), analogue, and digital interfaces, as well as onboard Wi-Fi, internet, and LAN technologies. This study identifies and ranks the cyber risks that cause ECDIS control loss, as well as the barriers that can be put in place to stop them, the potential consequences if they are not stopped, and the mitigations that can be utilised to avoid them. Due to a lack of historical data and research on identifying and prioritising ECDIS cyber security dynamics in the literature and the fact that this field necessitates specialised knowledge in terms of computer science and operational maritime navigation, the Fuzzy Triangular Full Consistency Method (FUCOM-F), based on expert opinion, is used in this study. Then, a bow-tie framework is employed to visualize the dynamics of ECDIS cyber security and their hierarchical classification from the analysis as a cyber-architecture. The results indicate that the primary cyber threat for ECDIS is "malware infection via the internet and intranet (M1)." The primary potential consequence, in the event that these cyber threats targeting ECDIS cannot be prevented, is the unavailability of the system (O1). The most efficient barriers against M1 attacks are “up-to-date virus protection” and “scanning software," while the most crucial measure to prevent the impact of O1 is "network segregation." Consequently, in addition to its strong methodological foundation, this research offers significant benefits to maritime professionals and cybersecurity experts by providing valuable insights on preventing cyber-attacks on bridge system infrastructure, particularly ECDIS.

Exploring the Relationship between National Security Risks and Economic Factors: A Nepalese Perspective

Macroeconomic variables have a significant impact on national security. This article examines the intricate association between macroeconomic variables and national security, emphasizing the bottomless effects of economic factors on individual vulnerability to national security risks. The evolution of conventional and unconventional power, encompassing both hard and soft power, has taken on a hybrid form central to national security considerations. In today’s globalized world, economic variables have become pivotal in shaping national security threats. Employing the Critical Political Economic Approach (CPE), the study focuses on Nepal as a case study to analyze the interplay between economic determinants and national security risks. The findings indicate that the expansion of trade, financial services, FDI, migration, and remittances both positively and negatively influences national security concerns, whereas growth in poverty and inequality, foreign aid and loans, crises, corruption, critical ICT infrastructures, and cyber risks heighten threats to Nepal's security. The study suggests that fostering strong economic conditions and positive trends can mitigate the likelihood of national security incidents.