Under the title “Actuarial study on quantifying the risk associated with cybersecurity in critical infrastructures and the viability of a cyber insurance for them,” highly experienced University Carlos III of Madrid (UC4M) actuarial researchers led by Alejandro Balbás will support DeNexus’ team in critical developments for OT cyber risk quantification and cyber risk accumulation for large industrial corporations.
With this collaborative relationship, DeNexus and the UC3M will focus primarily on accumulation-risk modeling research. In this initiative researchers will evaluate and examine the accumulation of losses across multiple organizations and vertical sectors.
The outcome of this research will result in a unified vision of top-down, and bottom-down of OT cyber risk accumulation to provide asset owners, insurers and (re)insurers a more accurate, best-in-class approach to cyber risk accumulation estimation for large industrial assets/corporations.
“Quantification of Cyber risks is crucial in protecting industrial assets and in underwriting cyber insurance. Our unique approach in extracting operational cyber security data to then model and quantify Value at Risk enables a unique bottom-up approach for risk-accumulation. This is necessary to capture the unique characteristics of large industrial cyber risks and the underlying physical reality of these assets and industrial processes. We are thrilled and honored to work with Alejandro Balbás and his team at the UC3M to deliver in our mission to build the global standard for industrial cyber risk quantification for asset owners and insurers alike.” – said Jose Seara, Founder and CEO of DeNexus.
“Cyber-risk measurement and management is becoming more and more important for both researchers in Actuarial Mathematics and practitioners of the Insurance Industry. Researchers must face a complex challenge because they have to find appropriate statistical distributions under a significant lack of available data and a very fast evolution of the related technology. Insurers are facing a very promising new business line providing efficient competitors with significant profits but implying important risk levels. This common exciting project of DeNEXUS and the University Carlos III involves practitioners and academicians, and it will satisfy the wishes of both partners.” – said PhD in Mathematics and Professor Alejandro Balbás
DeNexus is the leading provider of cyber risk modeling for ICS/OT organizations and global (re)insurers. Our platform empowers the industrial enterprise and risk underwriters to quantify cyber risk exposure on a continuous, self-adaptive basis using the world’s first evidence-based data analytics software and services. The DeRISK Platform from DeNexus is the world’s first self-adaptive, cloud-based platform that uses evidence-based data to predict where and how breaches are likely to occur, what their business impact will be and how to mitigate them. DeNexus is headquartered in Sausalito, California with engineering based in Madrid, Spain.
UC3M was established by an Act of the Spanish Parliament on 5 May 1989 as a public university and has been a leader in innovative research ever since. The UC3M mission is to contribute to the improvement of society through teaching of the highest quality and cutting-edge research in line with stringent international guidelines. The University aspires to excellence in all its activities, with the aim of becoming one of the top universities in Europe.
About Alejandro Balbás
Alejandro Balbás has a PhD in Mathematics and is a Professor of Financial Economics in the Department of Business Administration at Universidad Carlos III de Madrid. His fields of interest have gradually evolved over time from mathematical issues to financial topics. Currently, Alejandro’s academic activity is devoted to Financial Markets and Insurance Markets, with a special focus on asset pricing, hedging, risk measureent and risk management.
Alejandro’s work has been published in mathematical journals, including Mathematica Japonica, Journal of Mathematical Analysis and Applications and Nonlinear Analysis; operations research journals such as the European Journal of Operational Research, Computers and Mathematics with Applications, and the Journal of Optimization Theory and Applications; and economics journals such as the Journal of Risk and Insurance, Insurance: Mathematics and Economics, and the Journal of Banking and Finance.