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Ai, Jing, and Tianyang Wang. 2023. “Exploring Cyber Risk Contagion - A Boundless Threat.” Variance 16 (1).


As the complexity and severity of cyber risk continue to expand, businesses face greater systemic risk from cyber threats. Cyber risk is likely contagious, given the increasing interconnectedness of the web-based global economy. Using a unique dataset, the SAS OpRisk Global Data, our research proposes and illustrates a flexible two-stage general framework to model cyber risk contagion across different entities and cyber risk events. This paper provides new insights on cyber risk contagion and can serve as an easily implementable stepping stone for businesses, insurers, regulators, and academics to analyze cyber risk contagion.

Accepted: February 14, 2020 EDT