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The objective of this paper is invetigate the following questions: How do vulnerability exposures in software change with time? Are we capable of accurately predicting software risk for the future in terms of volatility growth? How do user firms diversify their software investments to optimize the risk exposure? Based on the threshold risk profile and IT budget, what diversification strategies can firms possibly adopt?

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Aug 10th, 12:00 AM

GARCH-based Risk Assessment and Mean-Variance-based Risk Mitigation Framework for Software Vulnerabilities

The objective of this paper is invetigate the following questions: How do vulnerability exposures in software change with time? Are we capable of accurately predicting software risk for the future in terms of volatility growth? How do user firms diversify their software investments to optimize the risk exposure? Based on the threshold risk profile and IT budget, what diversification strategies can firms possibly adopt?