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This paper presents the funding principles of the HERMENEUT H2020 EU project (www.hermeneut.eu), whose objective is to assess cyber-risk and valuing consequences on both tangible and intangible assets. HERMENEUT innovates with a unique cyber-security cost-benefit analysis approach that combines current attack trends, integrated assessment of vulnerabilities and likelihoods of cyber-attacks with an innovative macro- and microeconomic model of intangible costs, to deliver risk estimations for individual organisations, sectors and the economy. It then suggests options to both apportion cyber-security budget on multiple mitigations and transfer non-tolerable residual risks to cyber-insurance. HERMENEUT also provides a decision support tool to stakeholders and validates it in two industries belonging to two sectors increasingly under cyber-attack: health-care and an Intellectual Property-intensive sector. The HERMENEUT project is now in its second year of life, heading to the proof of the theoretical funding assumptions in the field-tests.

The HERMENEUT Project: Enterprises Intangible Risk Management via Economic Models based on Simulation of Modern Cyber Attacks