Abstract
Given the increasing cooperation between organizations, the flexible exchange of security information across the allied organizations is critical to effectively manage information systems (IS) security in a distributed environment. In this paper, we develop a cooperative model for IS security risk management in a distributed environment. In the proposed model, the exchange of security information among the interconnected IS under distributed environment is supported by Bayesian networks (BNs). In addition, for an organization's IS, a BN is utilized to represent its security environment and dynamically predict its security risk level, by which the security manager can select an optimal action to safeguard the firm's information resources. The actual case studied illustrates the cooperative model presented in this paper and how it can be exploited to manage the distributed IS security risk effectively.