Digital Asset Valuation and Cyber Risk Measurement,
Edition 1 Principles of Cybernomics
By Keyun Ruan

Publication Date: 29 May 2019
Digital Asset Valuation and Cyber Risk Measurement: Principles of Cybernomics is a book about the future of risk and the future of value. It examines the indispensable role of economic modeling in the future of digitization, thus providing industry professionals with the tools they need to optimize the management of financial risks associated with this megatrend. The book addresses three problem areas: the valuation of digital assets, measurement of risk exposures of digital valuables, and economic modeling for the management of such risks. Employing a pair of novel cyber risk measurement units, bitmort and hekla, the book covers areas of value, risk, control, and return, each of which are viewed from the perspective of entity (e.g., individual, organization, business), portfolio (e.g., industry sector, nation-state), and global ramifications. Establishing adequate, holistic, and statistically robust data points on the entity, portfolio, and global levels for the development of a cybernomics databank is essential for the resilience of our shared digital future. This book also argues existing economic value theories no longer apply to the digital era due to the unique characteristics of digital assets. It introduces six laws of digital theory of value, with the aim to adapt economic value theories to the digital and machine era.

Key Features

  • Comprehensive literature review on existing digital asset valuation models, cyber risk management methods, security control frameworks, and economics of information security
  • Discusses the implication of classical economic theories under the context of digitization, as well as the impact of rapid digitization on the future of value
  • Analyzes the fundamental attributes and measurable characteristics of digital assets as economic goods
  • Discusses the scope and measurement of digital economy
  • Highlights cutting-edge risk measurement practices regarding cybersecurity risk management
  • Introduces novel concepts, models, and theories, including opportunity value, Digital Valuation Model, six laws of digital theory of value, Cyber Risk Quadrant, and most importantly, cyber risk measures hekla and bitmort
  • Introduces cybernomics, that is, the integration of cyber risk management and economics to study the requirements of a databank in order to improve risk analytics solutions for (1) the valuation of digital assets, (2) the measurement of risk exposure of digital assets, and (3) the capital optimization for managing residual cyber risK
  • Provides a case study on cyber insurance
About the author
By Keyun Ruan, Consultant
Table of Contents
1. Digital Assets as Economic Goods2. Digital Theory of Value3. Cyber Risk Management: A New Era of Enterprise Risk Management4. Cyber Risk Measurement in the Hyperconnected World5. Economic Modelling and the Implementation of Effective Mitigating Controls6. The Point of Diminishing Return on Cyber Risk Investment7. Kilogram of Cyber Risk: Introducing BM and hekla8. Three Views of Cybernomics: Entity View, Portfolio View, and Global View9. Principles of Cybernomics10. Case Study: Insuring the Future of Everything
Book details
ISBN: 9780128121580
Page Count: 200
Retail Price : £70.95
9780123756626; 9780123744487; 9780128035900
Finance and economics researchers, scholars, and professionals working in the information technology and finance industries, including risk, insurance, information security, data management, capital modelling, digital transformation, and business resilience