Showing posts with label risk. Show all posts
Showing posts with label risk. Show all posts

4/17/2012

Information Security Management Metrics: A Definitive Guide to Effective Security Monitoring and Measurement Review

Information Security Management Metrics: A Definitive Guide to Effective Security Monitoring and Measurement
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Measuring information security is the greatest remaining challenge for many of us. Metrics are essential for a scientific management approach, rather than relying purely on gut feel and guesswork. Standards such as ISO/IEC 27001 require the use of objective information about the status and effectiveness of information security controls in relation to the risks, in order to drive appropriate improvements in the Information Security Management System. However, it is not immediately obvious exactly what needs measuring, nor how to do it. This book lays out the foundations on which a rational measurement system can be designed to manage information security in a more objective fashion.
The author encourages readers to consider a wide variety of measurement approaches and apply them sensibly to their information security management issues. In addition to conventional information security metrics, the book draws on governance, risk management, financial management and business analysis methods, a more diverse range of approaches than is normally covered in this field. Introducing measures of organization structure and culture sets this security metrics book apart from most others.
Although the writing style is clear, this is a complex subject covered in depth. Being rather theoretical in approach, the book won't suit practitioners simply looking for a short checklist of `security things to measure'. However, those with the interest and time to study Information Security Management Metrics will be rewarded with a deeper and more rounded understanding of the issue. As such, the book is probably of most value to CISOs and ISMs tasked with implementing better security metrics, and to information security management students.

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Spectacular security failures continue to dominate the headlines despite huge increases in security budgets and ever-more draconian regulations. The 20/20 hindsight of audits is no longer an effective solution to security weaknesses, and the necessity for real-time strategic metrics has never been more critical. Information Security Management Metrics: A Definitive Guide to Effective Security Monitoring and Measurement offers a radical new approach for developing and implementing security metrics essential for supporting business activities and managing information risk. This work provides anyone with security and risk management responsibilities insight into these critical security questions: How secure is my organization?How much security is enough?What are the most cost-effective security solutions?How secure is my organization?Solid metrics are the key to cost-effective information security - you can't manage what you can't measure This volume shows readers how to develop metrics that can be used across an organization to assure its information systems are functioning, secure, and supportive of the organization's business objectives. It provides a comprehensive overview of security metrics, discusses the current state of metrics in use today, and looks at promising new developments. Later chapters explore ways to develop effective strategic and management metrics for information security governance, risk management, program implementation and management, and incident management and response. The book ensures that every facet of security required by an organization is linked to business objectives, and provides metrics to measure it. Case studies effectively demonstrate specific ways that metrics can be implemented across an enterprise to maximize business benefit. With three decades of enterprise information security experience, author Krag Brotby presents a workable approach to developing and managing cost-effective enterprise information security.

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4/12/2012

Risk Analysis of Complex and Uncertain Systems (International Series in Operations Research & Management Science) Review

Risk Analysis of Complex and Uncertain Systems (International Series in Operations Research and Management Science)
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This is an excellent, approachable read for any risk manager; understanding its examples requires only elementary probability, statistics and calculus, though the foundations are much deeper. The author uses direct language, and does not hesitate to declare a fashionable risk analysis technique "worse than useless." The author shows how not to do risk analysis, using simple but devastating examples to illustrate the weaknesses of prioritized investments, subject matter expert opinion, risk matrices and qualitative risk assessments, and the independence assumption. Then, case studies present constructive examples of good practice. Refreshingly, this text clearly distinguishes between threats from Mother Nature, and those posed by an intelligent adversary. There is unevenness, because this is an edited ensemble of papers originally published in a variety of technical journals; however, this is also a strength, because the appeal and scholarship underlying biological, engineering, and social science examples is broad. This is not a how-to guide, and won't help fill in a blank page risk analysis; however, this is an excellent source for the skeptical consumer of contemporary risk management advice and products, and hopefully will have some influence with policy makers who are the source of simplistic and dangerous guidance.

Gerald G. Brown
Distinguished Professor of Operations Research
Naval Postgraduate School
National Academy of Engineering
INFORMS Fellow


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In Risk Analysis of Complex and Uncertain Systems acknowledged risk authority Tony Cox shows all risk practitioners how Quantitative Risk Assessment (QRA) can be used to improve risk management decisions and policies. It develops and illustrates QRA methods for complex and uncertain biological, engineering, and social systems - systems that have behaviors that are just too complex to be modeled accurately in detail with high confidence - and shows how they can be applied to applications including assessing and managing risks from chemical carcinogens, antibiotic resistance, mad cow disease, terrorist attacks, and accidental or deliberate failures in telecommunications network infrastructure. This book was written for a broad range of practitioners, including decision risk analysts, operations researchers and management scientists, quantitative policy analysts, economists, health and safety risk assessors, engineers, and modelers.

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1/13/2012

Scaling Analysis in Modeling Transport and Reaction Processes: A Systematic Approach to Model Building and the Art of Approximation Review

Scaling Analysis in Modeling Transport and Reaction Processes: A Systematic Approach to Model Building and the Art of Approximation
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This is a most recommended book to everyone dealing with engineering analysis. Nicely written, this is a good reading. Recomended for graduate students or advanced undergrad with strong interest on math, computer analysis.

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This book is unique as the first effort to expound on the subject of systematic scaling analysis. Not written for a specific discipline, the book targets any reader interested in transport phenomena and reaction processes. The book is logically divided into chapters on the use of systematic scaling analysis in fluid dynamics, heat transfer, mass transfer, and reaction processes. An integrating chapter is included that considers more complex problems involving combined transport phenomena. Each chapter includes several problems that are explained in considerable detail. These are followed by several worked examples for which the general outline for the scaling is given. Each chapter also includes many practice problems.
This book is based on recognizing the value of systematic scaling analysis as a pedagogical method for teaching transport and reaction processes and as a research tool for developing and solving models and in designing experiments. Thus, the book can serve as both a textbook and a reference book.

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9/07/2011

Investment Guarantees: The New Science of Modeling and Risk Management for Equity-Linked Life Insurance Review

Investment Guarantees: The New Science of Modeling and Risk Management for Equity-Linked Life Insurance
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As guarantee products are popping up all over the global banking and insurance markets, it is absolutely essential to ensure that the proper financial values are upheld in order to avoid many of the problems that the North American market has faced. 'Investment Guarantees' does a wonderful job of describing these risks in simple enough terms that the pages can be quoted to both financial and non financial people. A very powerful read for those looking to undersand the value of guarantees that are placed on accumulation type insurance products.

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A comprehensive guide to investment guarantees in equity-linked life insuranceDue to the convergence of financial and insurance markets, new forms of investment guarantees are emerging which require financial service professionals to become savvier in modeling and risk management. With chapters that discuss stock return models, dynamic hedging, risk measures, Markov Chain Monte Carlo estimation, and much more, this one-stop reference contains the valuable insights and proven techniques that will allow readers to better understand the theory and practice of investment guarantees and equity-linked insurance policies.Mary Hardy, PhD (Waterloo, Ontario, Canada), is an Associate Professor and Associate Chair of Actuarial Science at the University of Waterloo and is a Fellow of the Institute of Actuaries and an Associate of the Society of Actuaries, where she is a frequent speaker. Her research covers topics in life insurance solvency and risk management, with particular emphasis on equity-linked insurance. Hardy is an Associate Editor of the North American Actuarial Journal and the ASTIN Bulletin and is a Deputy Editor of the British Actuarial Journal.

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9/04/2011

Regression Modeling with Actuarial and Financial Applications (International Series on Actuarial Science) Review

Regression Modeling with Actuarial and Financial Applications (International Series on Actuarial Science)
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This text covers regression techniques which the author views as the most commonly used statistical technique especially in the world of insurance and finance. Since the book is in a series for actuarial science I expected the presentation to be elementary to intermediate and to only cover regression. But some of the latter topics were quite advanced. In my mind survival analysis which is extremely important to actuaries and time series analysis which in very important to finance would not be covered as they do not fall into the category of regression. But thankfully they are included.
Some time series models such as polynomial functions of time can be viewed as linear regression models where time is the predictor variable for the response. But the main models like exponetial smoothing, Box-Jenkins and ARCH/GARCH which are the main ones applied in financial forecasting are really not regression in my view. But these too are covered in the book.
The book starts out in Chapter 1 with a very elementary review of statistics and simple forms of regression. Then Chapter 2-6 form part I which is titled Regression. Chapter 2 presents the basics of simple linear regression. Chapters 3 and 4 cover multiple regression. This is not a cookbook of techniques. The author provides background, historical developments and important concepts and mixes in applications to actuarial science and finance throughout. At the end of most chapters are a large number of exercises with solutions for selected problems in the back. In chapter 3 the author explains least squares presents the modeling assumptions and introduces the Gauss-Markovas well as all the standard concepts of hypothesis testing that a regression parameter is significant, R-square and theorem (hence also the concept of minimum variance among unbiased estimators). In Chapter 4 he provides the unified theme of the general linear hypothesis as he covers categorical predictor variables, the analysis of variance and covariance (all general linear models) In Chapter 5, leverage points, multicollinearity, and regression diagnostics are presented in the context of variable selection. Chapter 6 is all about interpretation and limitations.
Later in Parts III and IV the author introduces nonlinear regression models, logistic regression, probit and tobit models, Poisson and negative binomial regression, generalized linear models,and specialized techniques such as bootstrapping, mixed linear models, proportional hazards regression, generalized additive models and the Bayesian approach to regression. The coverage gets more advanced as you move through the chapters
Part II on time series includes seasonal models, discussion of stationary and longitudinal and panel data models.
In Part III survival analysis is included in Chapter 14. This includes the Kaplan-Meier estimates, proportional hazards regression, accelerated failure time models and even the analysis of recurrent events.
Part IV specifically focuses on actuarial applications and it is here that heavytailed distributions are dealt with using quantile regression and extreme value probability models.
With such an extensive list of topics the book is a large volume of over 560 pages. But even so it is not possible to do justice to this extensive list. The author provides an outstanding list of references at the end of the chapters that provides additional reading on the various topics.
In addition the author prvides programs in SAS and R as well as output form these packages. More detailed examples and projects can be found on the books website.

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Statistical techniques can be used to address new situations. This is important in a rapidly evolving risk management and financial world. Analysts with a strong statistical background understand that a large data set can represent a treasure trove of information to be mined and can yield a strong competitive advantage. This book provides budding actuaries and financial analysts with a foundation in multiple regression and time series. Readers will learn about these statistical techniques using data on the demand for insurance, lottery sales, foreign exchange rates, and other applications. Although no specific knowledge of risk management or finance is presumed, the approach introduces applications in which statistical techniques can be used to analyze real data of interest. In addition to the fundamentals, this book describes several advanced statistical topics that are particularly relevant to actuarial and financial practice, including the analysis of longitudinal, two-part (frequency/severity), and fat-tailed data. Datasets with detailed descriptions, sample statistical software scripts in "R" and "SAS," and tips on writing a statistical report, including sample projects, can be found on the book's Web site: http://research.bus.wisc.edu/RegActuaries.

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