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Modeling Privacy Insurance Contracts and Their Utilization in Risk Management for ICT Firms

  • Athanassios N. Yannacopoulos
  • Costas Lambrinoudakis
  • Stefanos Gritzalis
  • Stylianos Z. Xanthopoulos
  • Sokratis N. Katsikas
Part of the Lecture Notes in Computer Science book series (LNCS, volume 5283)

Abstract

The rapid expansion of Internet based services has created opportunities for ICT firms to collect and use, in an unauthorized way, information about individuals (e.g. customers, partners, employees etc.). Therefore, privacy issues are becoming increasingly important. In this paper we model the risk that an IT firm is exposed to, as a result of potential privacy violation incidents. The proposed model is based on random utility modeling and aims at capturing the subjective nature of the question: ”how important is a privacy violation incident to someone?”. Furthermore, we propose a collective risk model for the economic exposure of the firm due to privacy violation. These models are useful for the design and valuation of optimal privacy related insurance contracts for the firm and are supportive to its risk management process.

Keywords

Privacy Risk Modeling Insurance Random Utility Models 

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Copyright information

© Springer-Verlag Berlin Heidelberg 2008

Authors and Affiliations

  • Athanassios N. Yannacopoulos
    • 1
  • Costas Lambrinoudakis
    • 2
  • Stefanos Gritzalis
    • 2
  • Stylianos Z. Xanthopoulos
    • 3
  • Sokratis N. Katsikas
    • 4
  1. 1.Dept. of StatisticsAthens University of Economics and BusinessGreece
  2. 2.Dept. of Information and Communication Systems EngineeringUniversity of the AegeanGreece
  3. 3.Dept. of Statistics and Actuarial-Financial MathematicsUniversity of the AegeanGreece
  4. 4.Dept. of Technology Education and Digital SystemsUniversity of PiraeusGreece

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