Modeling the Effect of Spending on Cyber Security by Using Surplus Process

Table 1

Traditional ruin theory and the proposed application on cyber security level modeling.

Notation	Traditional ruin theory	Apply to cyber security changes
	Insurer’s surplus level	Company’s cyber security level
	Initial surplus level	Initial level of cyber security
	Continuous premium income	Continuous cyber security development derived from cyber security investment
	Counting process of the number of claims	Counting process of the number of cyber attacks
	Insurance claims	Damage to security level caused by the attacks
Ruin event	Insolvency	Cyber breach