Correlated risk in cybersecurity

A computer-implemented method for quantifying correlated risk in a network of a plurality of assets having at least one dependency, each asset belonging to at least one entity, the method comprising:

• generating a dependency graph based on relationships between the plurality of assets, the at least one dependency, and the at least one entity, wherein the dependency graph comprises (i) a plurality of edges representing relationships between the plurality of assets, the at least one dependency, and the at least one entity and (ii) a plurality of nodes representing the plurality of assets, the at least one dependency, and the at least one entity, wherein each edge has a conditional probability that the asset on a receiving node of a particular edge, of the plurality of edges, is compromised given that the providing node, of the plurality of nodes, is compromised;
• executing a plurality of Monte Carlo simulations over the dependency graph, wherein each of the plurality of Monte Carlo simulations executes by:
• generating a seed event in the dependency graph, the seed event having a probability distribution;
• propagating disruption through the dependency graph based on the seed event;
• and
• terminating the respective Monte Carlo Simulation when a threshold number of nodes is affected by the disruption or a threshold loss magnitude aggregated for two or more assets of the plurality of assets affected by the disruption is exceeded;
• assessing, based on the plurality of Monte Carlo simulations, a loss for each asset of the plurality of assets;
• and
• aggregating the losses for two or more assets of the plurality of assets to determine correlated risk in the network.