Network resilience protected by a digital shield.

Is Your Network Ready? Building Cyber Resilience in an Interconnected World

Theo Raines in Tech & Innovation December 2025 • 3 min read.

"Navigate the complexities of systemic cyber risk and fortify your digital defenses against evolving threats."

In our increasingly interconnected world, modern societies and economies are ever more reliant on complex systems. Critical infrastructures such as energy grids, transportation and communication networks, financial markets, and digital systems are characterized by intricate interdependencies. These interconnections, while enabling efficiency and innovation, also create vulnerabilities that can be exploited by malicious actors.

Systemic risk, which arises from the internal characteristics of a system, poses a significant threat. Triggered by an initial failure or disruption, systemic risk can propagate and amplify through various channels connecting system entities. Understanding systemic risk requires not only examining individual components but also the patterns of interactions and feedback mechanisms within the network.

In this article, we explore decision-making frameworks tailored for managing systemic cyber risk in networks. We will delve into the fundamental components of these frameworks, including acceptable network configurations, risk mitigation interventions, and cost functions. While our focus is on digital networks, the parallels to risk management in other complex systems will also be explored.

What is a Decision-Making Framework for Network Resilience?

Network resilience protected by a digital shield.

A decision-making framework for network resilience (DMFNR) provides a structured approach to assessing and managing systemic cyber risk. It is built upon three key components:

These components are:

Acceptance Set (A): Defines the set of network configurations deemed secure enough.
Intervention Set (I): Includes actions to transform non-acceptable networks into acceptable ones.
Cost Function (C): Quantifies the costs associated with making a network acceptable.

The supervisor—whether it’s a regulator, an insurance company, or a local risk manager—plays a crucial role in setting security standards by prescribing the acceptance set. This involves identifying network features that may induce concentration risks or assessing resilience against cyberattack scenarios. When a network falls outside the acceptance criteria, suitable risk mitigants are implemented to secure it. These interventions, which could include firewalls, security patches, or access controls, are selected from the intervention set. The goal is to balance security improvements with the associated costs, as quantified by the cost function.

Building a More Resilient Future

By adopting decision-making frameworks for network resilience, organizations and societies can better protect themselves from the ever-evolving landscape of cyber threats. As technology advances and interconnections deepen, a proactive and strategic approach to managing systemic cyber risk will be essential for maintaining stability and security in the digital age.

About this Article -

This article was crafted using a human-AI hybrid and collaborative approach. AI assisted our team with initial drafting, research insights, identifying key questions, and image generation. Our human editors guided topic selection, defined the angle, structured the content, ensured factual accuracy and relevance, refined the tone, and conducted thorough editing to deliver helpful, high-quality information.See our About page for more information.

Everything You Need To Know

What is systemic cyber risk and why is it a concern?

Systemic cyber risk arises from the internal characteristics of a system and can spread rapidly due to the interdependencies within the system. The concern is that a single failure or disruption can propagate through various channels, affecting critical infrastructures such as energy grids, transportation, and financial markets. This can lead to widespread damage and instability, highlighting the need for robust risk management strategies. Understanding systemic risk requires examining individual components as well as the patterns of interactions and feedback mechanisms within the network.

What are the fundamental components of a Decision-Making Framework for Network Resilience (DMFNR)?

A DMFNR comprises three key components: the Acceptance Set (A), the Intervention Set (I), and the Cost Function (C). The Acceptance Set (A) defines the acceptable network configurations, set by a supervisor, and identifying network features that may induce concentration risks or assessing resilience against cyberattack scenarios. The Intervention Set (I) includes the actions to transform non-acceptable networks into acceptable ones, such as implementing firewalls or security patches. The Cost Function (C) quantifies the costs associated with making a network acceptable, enabling a balance between security improvements and financial considerations.

How does the Acceptance Set (A) contribute to network security within a DMFNR?

The Acceptance Set (A) is crucial because it defines the security standards for network configurations. The supervisor, such as a regulator or risk manager, uses the Acceptance Set to set the acceptable network configurations. This involves identifying network features that may induce concentration risks or assessing resilience against cyberattack scenarios. If a network does not meet the criteria set within the Acceptance Set, it triggers the need for interventions to bring the network into compliance, thereby improving security.

Can you explain the role of the Intervention Set (I) in a DMFNR?

The Intervention Set (I) comprises a set of actions designed to transform a network that falls outside the Acceptance Set (A) into a secure state. These interventions can include a range of measures, such as the implementation of firewalls, deployment of security patches, or the application of access controls. The goal is to mitigate risks and improve the network's resilience by making the necessary changes to align with the security standards established in the Acceptance Set.

How does the Cost Function (C) influence the decision-making process within a DMFNR?

The Cost Function (C) plays a critical role by quantifying the costs associated with the interventions needed to make a network acceptable. This function enables decision-makers to balance security improvements with the financial implications. By considering the cost function, organizations can select the most cost-effective interventions from the Intervention Set (I), ensuring that they achieve the desired level of security without unnecessarily burdening resources. This helps in making informed decisions about resource allocation for network security measures.