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There is a great demand from the viewpoint of security insurance to calculate the value of damage due to leakage of personal information. The Japan Network Security Association(JNSA) proposed a model to calculate the damage compensation amount. However, the coefficient was determined by experts’ subjective evaluations for which there is no basis. We propose a new mathematical model by applying multiple regression using cyber incident records and information such as enterprise size as explanatory variables and the value of extraordinary losses to a company as a target variable. We apply the damage model to 15,000 cyber incidents, compare the two models’ loss amounts, and consider the relationship between them.

Mathematical Model to Estimate Loss by Cyber Incident in Japan