This document outlines a financial strategy for companies to hedge their cybersecurity risks by raising money from the financial market. It discusses the use of Value at Risk (VaR) assessments, the creation of tranches to manage risk, and the potential for a new market for 'bonds' based on cybersecurity risk. The document also addresses the technical and financial details of the strategy, including risk assessment, fee structures, and potential side effects. It highlights the need for connections with insurance and reinsurance companies, law firms, and incident response companies. The document raises open questions about the acceptance of this strategy by CFOs, companies, and investors, and the legal requirements involved.
documents/EFTA01201216.pdf
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