# Cyber Insurance for Energy Economic Risks
## 6 Comparative Analysis of Cybersecurity Methodologies
The superior performance of the DRO method in both cost reduction and risk mitigation efficiency positions it as a promising approach for enhancing the cyber resilience of power systems. These findings advocate for its consideration and potential implementation in real-world scenarios; here, reducing costs while effectively managing risks is of paramount importance. Table 5 presents a detailed comparison of financial resilience metrics among the three distinct methodologies that were applied to cyber risk management within power systems. This table focuses on three critical financial indicators: cost reduction, risk mitigation efficiency, and the cost-benefit ratio. Cost reduction (%) is quantified as the percentage reduction in financial outlays necessary for managing cyber risks, reflecting how each method economizes on cyber risk management expenses. Risk mitigation efficiency (%) assesses the effectiveness of each method in reducing the likelihood and impact of cyber threats, an effort which is crucial for maintaining operational integrity. The cost-benefit ratio offers insight into the economic efficiency of the investments, calculated by comparing the costs incurred to the benefits gained, expressed as a ratio. The proposed Distributionally Robust Optimization (DRO) method exhibits the highest performance across all the metrics, with a cost reduction of 14.3%, a risk mitigation efficiency of 40.6%, and a cost-benefit ratio of 1:4.2. These results indicate the superior cost management of the DRO method, in addition to its exceptional balance of expenditure versus payoff, suggesting an optimal allocation of resources for maximum return on investment. In comparison, the Coalitional Cyber Insurance Model and the Actuarial Cybersecurity Framework show lower efficacies, with cost reductions of 12.8% and 10.9%, risk mitigation efficiencies of 35.4% and 30.7%, and cost-benefit ratios of 1:3.5 and 1:2.9, respectively. This analysis highlights the DRO method's superior capability in providing robust financial management and risk-mitigation strategies, making it a more compelling choice for enhancing the financial resilience of power systems against cyber threats. The superior metrics associated with the DRO method demonstrate its potential for broad implementation in sectors requiring stringent risk-management frameworks, where effective cost management and high returns on security investment are paramount. \begin{table}
\begin{tabular}{c c c} \hline \hline
**Method** & **Cost Reduction (\%)** & **Risk Mitigation Efficiency (\%)** \\ \hline The proposed DRO method & 12.5 & 82.3 \\ Coalitional Cyber Insurance Model & 10.2 & 75.5 \\ Actuarial Cybersecurity Framework & 8.7 & 70.8 \\ \hline \hline \end{tabular}
\end{table} 
Table 4: Performance metrics comparison. The comparative analysis outlined in Tables 4 and \(5\) conclusively demonstrates the distinct advantages of the proposed DRO method over the methodologies presented in the Coalitional Cyber Insurance Model and the Actuarial Cybersecurity Framework. Primarily, the DRO method excels in both financial efficiency and operational effectiveness, achieving a 12.5% reduction in cost and an 82.3% increase in risk mitigation efficiency, which are substantial improvements over the other methods. Furthermore, the financial resilience metrics solidify the DRO method's superiority, with a cost reduction of 14.3%, a risk mitigation efficiency of 40.6%, and an impressive cost-benefit ratio of 1:4.2, significantly outpacing the other models. These results underscore the DRO method's capability to not only manage costs more effectively but also enhance the operational stability of power systems under cyber threats. This is achieved through an innovative optimization approach that better adapts to the complexities and dynamics of modern cyber environments, allowing for more precise risk assessments and more effective allocation of resources.