METHODS FOR THE IDENTIFICATION OF CYBER RISKS: AN ANALYSIS BASED ON PATENT DATA

Lyubov Klapkiv, Yurij Klapkiv

Abstract


The problem of fast-rising cyber-risks become very important in the era of the Fourth Industrial Revolution. Cyber-risks cause not only high losses but also break the chain of economic relations between companies and their customers. Besides, cyber risks change their form and structure rapidly, so the tools of risk management must be adequate. That is why the problem of cyber-risk identification and assessment has gotten attention and become so actual. The purpose of this study is to outline new approaches to identifying and estimating cyber-risks based on the dates of the World International Property Organization (WIPO).  

In order to conduct our study, we will use various tools and techniques such as: citation analysis, cluster analysis, and visualization. We have analyzed the patent information from the groups of “Electric digital data processing”, “Transmission of digital information” and data processing systems or methods, specially adapted for financial purposes. In our findings, we analyze the technical and economic significance of patents.

Our work has led us to conclude that the number of methods of cyber risk identification that were the objects of applications granted by WIPO has a strong connection with the number of cyber-attacks from 2010 to 2017. That is why the innovative methods that were granted have a wide spectrum of influence and could be used in different stages of risk management. We selected patents that based on cyber risk identification and assessment from the data of WIPO and divided these patents into clusters. This helps us in understanding the trends and characters of innovative activities directed to successful management of cyber risks.


Keywords


cyber-attacks, risks, patents, clusters

Full Text:

PDF

References


Alalia, M., Almogrena, A., Hassana, M., Rassana, lehab A. L., Bhuiyanb, Z. A. (2018). Improving risk assessment model of cyber security using fuzzy logic inference system. Computers & Security, 74, 323-339.

Cebula, J.J., Young, L.R. (2010). A Taxonomy of Operational Cyber Security Risks, CMU/Software Engeniering Institute, Pittsburg: PA.

Committee on Payments and Market Infrastructures and International Organization of Securities Commissions. (June 2016). Guidance on Cyber Resilience for Financial Market Infrastructures. Retrived from https://www.bis.org/cpmi/publ/d146.htm.

Dreyer, P., Jones, T., Klima, K., Oberholtzer, J., Strong, A., Welburn, J.W., Winkelman, Z. (2018). Estimating the Global Cost of Cyber Risks, Methodology and Examples. Retrived April, 14, 2018, from https://www.rand.org/pubs/research_reports/RR2299.html

Eling, M. (2017). What do we know about cyber risk and cyber risk insurance? The Journal of Risk Finance, 5, 474-491.

Federal Bureau of Investigation. (2016). Internet Crime Report, Retrived from https://pdf.ic3.gov/2016_IC3Report.pdf

Gereth, P. W., Shevchenko, P.V., Cohen, D. R., Maurice, D. (2017). Understanding Cyber Risk and Cyber Insurance. Retrived March, 2018, from http://dx.doi.org/10.2139/ssrn.3065635

Global Economic Forum. (2017). The Global Risks Report 2017. 12th Edition. Retrived April, 01, 2018, from http://wef.ch/risks2017

Griliches, Z. (1990). Patent Statistics as Economic Indicators: A Survey. Journal of Economic Literature, 28 (4), 1661-1707. Retrived from http://www.jstor.org/fcgi-bin/jstor/listjournal.fcg/00220515/.21-.30

Hall, B., Jaffe, A., & Trajtenberg, M. (2005). Market Value and Patent Citations. The RAND Journal of Economics, 36 (1), 16-38. Retrieved from http://www.jstor.org/stable/1593752

Cherdantseva, Y., Burnapa, P., Blythb, A., Edenb, P., Jonesc, K., Soulsbyc, H., Stoddartd, K. (2016, February). A review of cyber security risk assessment methods for SCADA systems. Computers & Security, 56, 1-27.

Kopp E., Kaffenberger L., Wilson C., (2017), Cyber Risk, Market Failures, and Financial Stability, (Working Paper of International Monetary Fund). Retrieved March, 2018, from https://www.imf.org/en/Publications/WP/Issues/2017/08/07/Cyber-Risk-Market-Failures-and-Financial-Stability-45104

Lerner, J. (2002). 150 Years Of Patent Protection, American Economic Review, 92, 221-225. Retrived from http://www.nber.org/papers/w8977

Mukhopadhyay, A., Chatterjee, S., Bagchi, K. K., Kirs, P. J., Shukla, G. K. (2017). Cyber Risk Assessment and Mitigation (CRAM) Framework Using Logit and Probit Models for Cyber Insurance. Information Systems Frontiers. Retrived from https://doi.org/10.1007/s10796-017-9808-5

Patel, S., Zaveri, J. (2010). A Risk-Assessment Model for Cyber Attacks on Information Systems. Journal of computers, 5 (3), 352-359.

Scherer, F.M. (1965). Firm Size, Market Structure, Opportunity, and the Output of Patented Inventions. American Economic Review, 55, 1097-1123.

Schmookler, J. (1966). Invention and Economic Growth. (1st ed.). United States of America: Harvard University Press.

World Intellectual Property Organization. (2016). Patent 2965505. System and method for automatic calculation of cyber-risk in business-critical applications. Retrived from https://patentscope.wipo.int/search/en/detail.jsf?docId=CA196211112&recNum=108&office=&queryString=FP%3A%28cyber+AND+risk%29+&prevFilter=&sortOption=Pub+Date+Desc&maxRec=197

World Intellectual Property Organization. (2017). Patent 20170279843. Probabilistic model for cyber risk forecasting. Retrived from https://patentscope.wipo.int/search/en/detail.jsf?docId=US204154128&recNum=2&office=&queryString=EN_ALLTXT%3A%28of+costs+of+predicted+losses+and+systemic+risk%29+and+cyber+threats&prevFilter=&sortOption=Relevance&maxRec=381

World Intellectual Property Organization. (2017a). Patent 2017268570. Cyber security system and method. Retrived from https://patentscope.wipo.int/search/en/detail.jsf?docId=AU208388013&recNum=6&office=&queryString=FP%3A%28cyber+AND+risk%29+&prevFilter=&sortOption=Pub+Date+Desc&maxRec=197

World Intellectual Property Organization. (2018). Patent 20180069891. System and Method of Mitigating Cyber Attack Risks. Retrived from https://patentscope.wipo.int/search/en/detail.jsf?docId=US213383205&recNum=3&office=&queryString=FP%3A%28cyber+AND+risk%29+&prevFilter=&sortOption=Pub+Date+Desc&maxRec=197




DOI: http://dx.doi.org/10.12955/cbup.v6.1163

Refbacks

  • There are currently no refbacks.


Print ISSN 1805-997X, Online ISSN 1805-9961

(c) 2018 CBU Research Institute s.r.o.

For more information on the conference visit cbuic.cz