Professor Thibaut Mastrolia

Berkeley IEOR Professor Thibaut Mastrolia has been awarded a grant from the France-Berkeley Fund (FBF) for his proposal, “Mathematical modeling for cyber-risk insurance.” Established in 1993 through a partnership with the French Ministry of Foreign Affairs, the FBF is committed to advancing top-tier research, promoting interdisciplinary collaboration, and fostering new partnerships between France and the United States. This grant will allow Mastrolia to join forces with researcher Caroline Hillairet from ENSAE Paris to deepen our understanding of cyber security and develop solutions for better insurability of this risk through the use of innovative mathematical modeling techniques.

According to Jerome Powell, Chairman of the Federal Reserve, cyberattacks have become the most significant threat to the global financial system. Recent health and geopolitical crises, particularly the COVID-19 pandemic, have exacerbated this risk, leading to a surge in cybercriminal activity such as ransomware attacks. The cost of cybercrime is said to amount to a staggering 1% of the world’s GDP, equivalent to $1,000 billion annually. This alarming statistic underscores the urgent need for robust cybersecurity measures and innovative strategies to combat cyber threats on a global scale.

In “Mathematical modeling for cyber-risk insurance,” Mastrolia and Hillairet plan to develop a regulatory policy framework to protect against cyberattacks, as well as new insurance and financial products that shield against the financial ramifications of cybercriminal activity. The project will leverage machine learning techniques to improve the efficiency and accuracy of fraud detection and cyberattack identification by analyzing both financial and actuarial data. The collaborative effort aims to enhance the insurability of cyber risk and address the pressing challenges facing this rapidly evolving field.

This award by the France-Berkeley Fund underscores not only the exceptional potential of Professor Thibaut Mastrolia’s research in the field of cybersecurity but also the critical importance of international collaboration in tackling complex global challenges

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