• Communications for Statistical Applications and Methods
• /
• v.30 no.1
• /
• pp.75-94
• /
• 2023

The growing trend of cyber risk has put forward the importance of cyber risk management. Cyber risk is defined as an accidental or intentional risk related to information and technology assets. Although cyber risk is a subset of operational risk, it is reported to be handled differently from operational risk due to its different features of the loss distribution. In this study, we aim to detect the characteristics of cyber loss and find a suitable model by measuring value at risk (VaR). We use the loss distribution approach (LDA) and the time series model to describe cyber losses of financial and non-financial business sectors, provided in SAS^® OpRisk Global Data. Peaks over threshold (POT) method is also incorporated to improve the risk measurement. For the financial sector, the LDA and GARCH model with POT perform better than those without POT, respectively. The same result is obtained for the non-financial sector, although the differences are not significant. We also build a two-dimensional model reflecting the dependence structure between financial and non-financial sectors through a bivariate copula and check the model adequacy through VaR.

• Journal of the Korea Institute of Information Security & Cryptology
• /
• v.27 no.5
• /
• pp.1233-1245
• /
• 2017

Cyber risk is rapidly increasing due to the hyperconnectivity of the IoT in the intelligent information society. Therefore cyber insurance has been attracting attention as a new risk management countermeasure by transferring cyber risk. However, cyber insurance is still a new concept in South Korea. The purpose of this study is to propose the concept of cyber insurance suitable for domestic demand by deriving the priority of cyber insurance coverage. Research results suggest that the most requisite cyber insurance types are business interruption and liability.

• Proceedings of the Korean Institute of Navigation and Port Research Conference
• /
• 2019.11a
• /
• pp.134-136
• /
• 2019

The International Maritime Organization (IMO) issued 2017 Guidelines on maritime cyber risk management. In accordance with IMO's maritime cyber risk management guidelines, each flag State is required to comply with the Safety Management System (SMS) of the International Safety Management Code (ISM) that the cyber risks should be integrated and managed before the first annual audit following January 1, 2021. In this paper, to identify cyber security management targets and risk factors in the maritime sector and to conduct vulnerability analysis, we catagorized the cyber security sector in management, technical and physical sector in maritime sector based on the industry guidelines and international standards proposed by IMO. In addition, the Risk Matrix was used to conduct a qualitative risk assessment according to risk factors by cyber security sector.

• International Journal of Computer Science & Network Security
• /
• v.22 no.6
• /
• pp.390-399
• /
• 2022

Cyber security and resilience are phrases that describe safeguards of ICTs (information and communication technologies) from cyber-attacks or mitigations of cyber event impacts. The sole purpose of Risk models are detections, analyses, and handling by considering all relevant perceptions of risks. The current research effort has resulted in the development of a new paradigm for safeguarding services offered online which can be utilized by both service providers and users. customers. However, rather of relying on detailed studies, this approach emphasizes task selection and execution that leads to successful risk treatment outcomes. Modelling intelligent CSGs (Cyber Security Games) using MLTs (machine learning techniques) was the focus of this research. By limiting mission risk, CSGs maximize ability of systems to operate unhindered in cyber environments. The suggested framework's main components are the Threat and Risk models. These models are tailored to meet the special characteristics of online services as well as the cyberspace environment. A risk management procedure is included in the framework. Risk scores are computed by combining probabilities of successful attacks with findings of impact models that predict cyber catastrophe consequences. To assess successful attacks, models emulating defense against threats can be used in topologies. CSGs consider widespread interconnectivity of cyber systems which forces defending all multi-step attack paths. In contrast, attackers just need one of the paths to succeed. CSGs are game-theoretic methods for identifying defense measures and reducing risks for systems and probe for maximum cyber risks using game formulations (MiniMax). To detect the impacts, the attacker player creates an attack tree for each state of the game using a modified Extreme Gradient Boosting Decision Tree (that sees numerous compromises ahead). Based on the findings, the proposed model has a high level of security for the web sources used in the experiment.

• Journal of the Korean Society of Marine Environment & Safety
• /
• v.30 no.3
• /
• pp.263-274
• /
• 2024

The digitization of ship environments has increased the risk of cyberattacks on ships. The smartization and automation of ships are also likely to result in cyber threats. The International Maritime Organization (IMO) has discussed the establishment of regulations at the autonomous level and has revised existing agreements by dividing autonomous ships into four stages, where stages 1 and 2 are for sailors who are boarding ships while stages 3 and 4 are for those not boarding ships. In this study, the level of a smart ship was classified into LEVELs (LVs) 1 to 3 based on the autonomous levels specified by the IMO. Furthermore, a risk assessment for smart ships at various LVs in different risk scenarios was conducted The cyber threats and vulnerabilities of smart ships were analyzed by dividing them into administrative, physical, and technical security; and mitigation measures for each security area were derived. A total of 22 cyber threats were identified for the cyber asset (target system). We inferred that the higher the level of a smart ship, the greater the hyper connectivity and the remote access to operational technology systems; consequently, the greater the attack surface. Therefore, it is necessary to apply mitigation measures using technical security controls in environments with high-level smart ships.

• Nuclear Engineering and Technology
• /
• v.53 no.10
• /
• pp.3319-3326
• /
• 2021

As a form of industrial control systems (ICS), nuclear instrumentation and control (I&C) systems have been digitalized increasingly. This has raised in turn cyber security concerns. Cyber security for ICS is important because cyber-attacks against ICS can cause not only equipment damage and loss of production but also personal and public safety hazards unlike in general IT environments. Numerous risk analyses have been carried out to enhance the safety of ICS and recently, many studies related to the cyber security of ICS are being conducted. Many existing risk analyses and cyber security studies have considered safety and cyber security separately. However, both safety and cyber security perspectives should be considered when analyzing risks for complex and critical ICS facilities such as nuclear power plants (NPPs). In this paper, the STPA-SafeSec methodology is selected to consider both safety and security perspectives when performing a risk analysis for NPPs in order to assess impacts on the safety by cyber-attacks against the digital I&C systems. The STPA-SafeSec methodology was applied to a test-bed system that simulates a condensate water (CD) system in an NPP. The process of the application up to the development of mitigation strategies is described in detail.

• Journal of the Korea Society of Computer and Information
• /
• v.24 no.11
• /
• pp.99-107
• /
• 2019

The "Risk management" and "Security monitoring" activities for cyber security are deeply correlated in that they prepare for future security threats and minimize security incidents. In addition, it is effective to apply a pattern model that visually demonstrates to an administrator the threat to that information asset in both the risk management and the security system areas. Validated pattern models have long-standing "control chart" models in the traditional quality control sector, but lack the use of information systems in cyber risk management and security systems. In this paper, a cyber Security Risk Monitoring (SRM) system that integrates risk management and a security system was designed. The SRM presents a strategy for applying 'security control' using the pattern of 'control charts'. The security measures were integrated with the existing set of standardized security measures, ISMS, NIST SP 800-53 and CC. Using this information, we analyzed the warning trends of the cyber crisis in Korea for four years from 2014 to 2018 and this enables us to establish more flexible security measures in the future.

• Nuclear Engineering and Technology
• /
• v.44 no.8
• /
• pp.919-928
• /
• 2012

The applications of computers and communication system and network technologies in nuclear power plants have expanded recently. This application of digital technologies to the instrumentation and control systems of nuclear power plants brings with it the cyber security concerns similar to other critical infrastructures. Cyber security risk assessments for digital instrumentation and control systems have become more crucial in the development of new systems and in the operation of existing systems. Although the instrumentation and control systems of nuclear power plants are similar to industrial control systems, the former have specifications that differ from the latter in terms of architecture and function, in order to satisfy nuclear safety requirements, which need different methods for the application of cyber security risk assessment. In this paper, the characteristics of nuclear power plant instrumentation and control systems are described, and the considerations needed when conducting cyber security risk assessments in accordance with the lifecycle process of instrumentation and control systems are discussed. For cyber security risk assessments of instrumentation and control systems, the activities and considerations necessary for assessments during the system design phase or component design and equipment supply phase are presented in the following 6 steps: 1) System Identification and Cyber Security Modeling, 2) Asset and Impact Analysis, 3) Threat Analysis, 4) Vulnerability Analysis, 5) Security Control Design, and 6) Penetration test. The results from an application of the method to a digital reactor protection system are described.

• International journal of advanced smart convergence
• /
• v.11 no.3
• /
• pp.7-16
• /
• 2022

The targets of cyber-attacks are not limited to the websites and internal IT systems of shipping agencies. Ships and ports have become important targets for cyber attackers. This paper examines the current state of ship network security, introduces the International Maritime Organization's resolution on ship network security management, and summarizing the cyber-attacks in maritime so the readers can have a general understanding of maritime environment.

• International Journal of Computer Science & Network Security
• /
• v.23 no.5
• /
• pp.179-192
• /
• 2023

The widespread use of Cloud Computing, Internet of Things (IoT), and social media in the Information Communication Technology (ICT) field has resulted in continuous and unavoidable cyber-attacks on users and critical infrastructures worldwide. Traditional security measures such as firewalls and encryption systems are not effective in countering these sophisticated cyber-attacks. Therefore, Intrusion Detection and Prevention Systems (IDPS) are necessary to reduce the risk to an absolute minimum. Although IDPSs can detect various types of cyber-attacks with high accuracy, their performance is limited by a high false alarm rate. This study proposes a new technique called Fuzzy Logic - Objective Risk Analysis (FLORA) that can significantly reduce false positive alarm rates and maintain a high level of security against serious cyber-attacks. The FLORA model has a high fuzzy accuracy rate of 90.11% and can predict vulnerabilities with a high level of certainty. It also has a mechanism for monitoring and recording digital forensic evidence which can be used in legal prosecution proceedings in different jurisdictions.