Balancing cybersecurity in a supply chain under direct and indirect cyber risks

Tadeusz Sawik

International Journal of Production Research, 2022, vol. 60, issue 2, 766-782

Abstract: Cybersecurity is an essential requirement for the sustainability of global supply chains. In this paper, a stochastic programming formulation is presented for optimisation of cybersecurity investment and selection of security controls to mitigate and balance the impact of direct and indirect (propagated) cyber risks in a multi-tier supply chain. Using a network transformation combined with the first-order Taylor series approximation of natural logarithm to linearise the nonlinear constraints, a nonlinear stochastic combinatorial optimisation model is approximated by its linear equivalent. The problem objective is to determine an optimal cybersecurity investment under limited budget and portfolio of security controls for each supply chain node to balance the cybersecurity over the entire supply chain. The minmax objective functions are applied to minimise either the maximum breach probability or the maximum loss of supply chain nodes. Alternatively, maxmin objectives are used to maximise either the minimum non-breach probability or the minimum saving of loss. The proposed integrated modelling approach is illustrated with results of computational study and a comparison of approximated and exact solution values is presented. The decision-making insights are provided and discussed.

Date: 2022
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://hdl.handle.net/10.1080/00207543.2021.1914356 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:tprsxx:v:60:y:2022:i:2:p:766-782

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/TPRS20

DOI: 10.1080/00207543.2021.1914356

Access Statistics for this article

International Journal of Production Research is currently edited by Professor A. Dolgui

More articles in International Journal of Production Research from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().