Quantifying Systemic Cyber Risk

A report exploring the connectedness in cyber risk

By connecting technologies into cyberspace, we are realising tremendous economic benefit. However, as our reliance on connectivity increases, so does our risk of attack. Understanding the scale of our cybersecurity risk is key to understanding the exposure to the global economy in the event of a major cyber incident.

Aon is part of the Global Cyber Risk Quantification Network (GCRQN), set up at the World Economic Forum, to help organisations explore the systemic quantification of cyber risks. The GCRQN consists of representatives from the government, academia and the risk and insurance industry. Focusing on the nature of the risk, the group shared their experiences and insights on the latest macro-level risk quantification methodologies for economics, policy making, risk management and society.

This report summarises some perspectives on key topics including:

• Connectedness of cyber risk
• Future developments in the systemic quantification of cyber risk
• The systemic and aggregated nature of cyber risks
• The role of cyber insurance in a developing market