e-Risk Management with Insurance: A Framework Using Copula Aided Bayesian Belief Networks

: e-business organizations are heavily dependent on distributed 24X7 robust information computing systems, for their daily operations. To secure distributed online transactions, they spend millions of dollars on firewalls, anti-virus, intrusion detection systems, digital signature and encryption. Nonetheless, a new virus or a clever hacker can easily compromise these deterrents, resulting in losses to the tune of millions of dollars annually. To cope up with the problem, in this work we propose to further enhance their security management by investing in e-risk insurance products as a viable alternative to reduce these individual financial losses. We develop a framework, based on copula aided Bayesian Belief Network (BBN) model, to quantify the risk associated with online business transactions, arising out of a security breach, and thereby help in designing einsurance products. We have simulated marginal data for each BBN nodes. The Copula model helps in arriving at the joint probabili...

• Type: Conference
• Year: 2006
• Where: HICSS
• Authors: Arunabha Mukhopadhyay, Samir Chatterjee, Debashis Saha, Ambuj Mahanti, Samir K. Sadhukhan
• Keywords: Bayesian Belief Network, Biometrics, HICSS 2006, Intrusion Detection Systems, Marginal Data, System Sciences