Dynamic structural percolation model of loss distribution for cyber risk of small and medium-sized enterprises for tree-based LAN topology

Cyber risk due to breach can be seen as a risk of a financial loss due to breach of an institution’s IT infrastructure by unauthorized parties and exploiting, taking possession of, or disclosing data assets, thus creating financial and/or reputation damage. In this paper, as a primary contribution to the existing body of actuarial literature, we propose a structural model of aggregate loss distribution for cyber risk of small and medium-sized …