Targeted Risk Assessment and Aggregation for Cyber Insurance Underwriting

When structuring a cyber insurance policy, an underwriter must understand two types of risk: the direct risk posed by the prospective policy holder’s own
actions and strategies, and the indirect risk posed by the external dependencies and fourth-party vendors of the policy holder. The latter risk assessment is as
critical as the first because entities are routinely breached through their vendors and service providers. Visibility of external dependencies must be factored into
the risk assessment of the primary policy holder in order to arrive at an accurate picture of risk exposure.

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