Chapter 7

Kilogram of Cyber Risk: Introducing Bitmort and Hekla

Abstract

This chapter discusses metrology and introduces novel risk units for cyber risk measurement. It covers the history and applications of micromort and of value at risk (VaR). It then discusses how concepts behind micromort and VaR can be applied to the cyber context. This chapter formally defines cyber risk measurement units, bitmort and hekla, to measure both objective (e.g., exposure) and subjective (e.g., willingness-to-pay) aspects of cyber risk. Risk calculation examples using bitmort and hekla are also included.

Keywords

Bitmort; hekla; cyber risk measurement units; objective and subjective measure of cyber risk; cyber risk calculation

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