Improving Cyber Security through Cyber Insurance and Data Analytics
March 3, 2017
Attempts to improve the state of cyber security have been on the rise over the past decade. In addition to enhancing existing software and infrastructure, there is a parallel need for incentivizing the adoption of these improved security practices by end users and organizations. My research aims to design such incentive mechanisms, and to leverage advances in data analytics for informed cyber-policy design.
In this talk, I will first discuss the design of cyber insurance contracts, with an emphasis on users’ unobservable security decisions (moral hazard) and their interdependence in security. I will demonstrate the role of cyber insurance in instilling commitment towards improved cyber security by leveraging users’ interdependence. In addition, I will describe how predictive analytics based on machine learning techniques can be used as a tool for improving the design of these cyber-insurance contracts, and also for regulating security information sharing agreements.
Further, I will present a game-theoretic framework for understanding individual users’ decisions towards security investments, and in particular, the effects of the network structure on the outcomes of their interactions. I will discuss how our findings extend several existing results in the literature, as well as their applications in other domains, including the study of spread of research and innovation, financial markets, and environmental pollution reduction policies.
Bio: Parinaz Naghizadeh is a postdoctoral research fellow in EECS at the University of Michigan. Her research interests include cyber security, game theory, network economics, optimization, and data analytics. She received her Ph.D. in electrical engineering from the University of Michigan in 2016, M.Sc. degrees in electrical engineering and mathematics, both from the University of Michigan, in 2013 and 2014, respectively, and a B.Sc. in electrical engineering from Sharif University of Technology, Iran, in 2010. She was a recipient of the Barbour scholarship in the 2014-15 academic year.