On Cyber-Physical Security of Smart Grid: Data Integrity Attacks and Experiment Platform

A Smart Grid is a digitally enabled electric power grid that integrates the computation and communication technologies from cyber world with the sensors and actuators from physical world. Due to the system complexity, typically the high cohesion of communication and power system, the Smart Grid innovation introduces new and fundamentally different security vulnerabilities and risks. In this work, two important research aspects about cyber-physical security of Smart Grid are addressed: (i) The construction, impact and countermeasure of data integrity attacks; and (ii) The design and implementation of general cyber-physical security experiment platform. For data integrity attacks: based on the system model of state estimation process in Smart Grid, firstly, a data integrity attack model is formulated, such that the attackers can generate financial benefits from the real-time electrical market operations. Then, to reduce the required knowledge about the targeted power system when launching attacks, an online attack approach is proposed, such that the attacker is able to construct the desired attacks without the network information of power system. Furthermore, a network information attacking strategy is proposed, in which the most vulnerable meters can be directly identified and the desired measurement perturbations can be achieved by strategically manipulating the network information. Besides the attacking strategies, corresponding countermeasures based on the sparsity of attack vectors and robust state estimator are provided respectively. For the experiment platform: ScorePlus, a software-hardware hybrid and federated experiment environment for Smart Grid is presented. ScorePlus incorporates both software emulator and hardware testbed, such that they all follow the same architecture, and the same Smart Grid application program can be tested on either of them without any modification; ScorePlus provides a federated environment such that multiple software emulators and hardware testbeds at different locations are able to connect and form a unified Smart Grid system; ScorePlus software is encapsulated as a resource plugin in OpenStack cloud computing platform, such that it supports massive deployments with large scale test cases in cloud infrastructure

Financial Derivatives Market for Grid Computing

This Master thesis studies the feasibility and properties of a financial derivatives market on Grid computing, a service for sharing computing resources over a network such as the Internet. For the European Organization for Nuclear Research (CERN) to perform research with the world's largest and most complex machine, the Large Hadron Collider (LHC), Grid computing was developed to handle the information created. In accordance with the mandate of CERN Technology Transfer (TT) group, this thesis is a part of CERN's dissemination of the Grid technology. The thesis gives a brief overview of the use of the Grid technology and where it is heading. IT trend analysts and large-scale IT vendors see this technology as key in transforming the world of IT. They predict that in a matter of years, IT will be bought as a service, instead of a good. Commoditization of IT, delivered as a service, is a paradigm shift that will have a broad impact on all parts of the IT market, as well as on the society as a whole. Political, economic and physical factors advocate a market for standardized computing resources supplied by multiple professional providers, benefiting from economies of scale. We argue for the trade of Virtual Servers as the standardized bundle of computer resources. Continuous trade of homogeneous resources allows for scheduling market efficiency and liquidity, but may entail a risk of erratic, unpredictable prices. We therefor e construct a complete, coherent Grid economy, consisting of both a spot market and a derivatives market. While the spot market is the trading place for the computer resources, the derivatives market aims to disperse the risk among those who are willing to invest in it. Because the Virtual Servers are non-storable assets, normal arbitrage theory cannot be used to price derivatives contracts. We propose to solve this issue by creating storable swap contracts priced by an auction-based market, where we argue that the price process follows a geometric Brownian motion. Taking into account the absence of arbitrage in the swap market and the requirement for a complete market, we offer a theoretical framework for martingale pricing and hedging of derivatives written on swaps

Capital markets and e-fraud: policy note and concept paper for future study

The technological dependency of securities exchanges on internet-based (IP) platforms has dramatically increased the industry's exposure to reputation, market, and operational risks. In addition, the convergence of several innovations in the market are adding stress to these systems. These innovations affect everything from software to system design and architecture. These include the use of XML (extensible markup language) as the industry IP language, STP or straight through processing of data, pervasive or diffuse computing and grid computing, as well as the increased use of Internet and wireless. The fraud is not new, rather, the magnitude and speed by which fraud can be committed has grown exponentially due to the convergence of once private networks on-line. It is imperative that senior management of securities markets and brokerage houses be properly informed of the negative externalities associated with e-brokerage and the possible critical points of failure that exist in today's digitized financial sector as they grow into tomorrow's exchanges. The overwhelming issue regarding e-finance is to determine the true level of understanding that senior management has about on-line platforms, including the inherent risks and the depth of the need to use it wisely. Kellermann and McNevin attempt to highlight the various risks that have been magnified by the increasing digitalization of processes within the brokerage arena and explain the need for concerted research and analysis of these as well as the profound consequences that may entail without proper planning. An effective legal, regulatory, and enforcement framework is essential for creating the right incentive structure for market participants. The legal and regulatory framework should focus on the improvement of internal monitoring of risks and vulnerabilities, greater information sharing about these risks and vulnerabilities, education and training on the care and use of these technologies, and better reporting of risks and responses. Public/private partnerships and collaborations also are needed to create an electronic commerce (e-commerce) environment that is safe and sound.Environmental Economics&Policies,Insurance&Risk Mitigation,Financial Intermediation,ICT Policy and Strategies,Banks&Banking Reform

Mindfully Resisting the Bandwagon – IT Implementation and Its Consequences in the Financial Crisis

Although the ”financial meltdown” between 2007 and 2009 can be substantially attributed to herding behaviour in the subprime market for credit default swaps, a “mindless” IT implementation of participating financial services providers played a major role in the facilitation of the underlying bandwagon. The problem was a discrepancy between two core complementary capabilities: (1.) the (economic-rationalistic) ability to execute financial transactions (to comply with the herd) in milliseconds and (2.) the required contextualized mindfulness capabilities to comprehend the implications of the transactions being executed and the associated IT innovation decisions that enabled these transactions

Factors Influencing Household Solar Adoption in Santiago, Chile

In Santiago, Chile, the market conditions are seemingly excellent for the household adoption of photovoltaic (PV) technology, yet the uptake is negligible. To explore this paradox, the authors conducted a Delphi study to solicit the knowledge of a panel of Chilean PV experts. These efforts yielded 26 factors—both motivations and barriers—impacting the diffusion of PV in Santiago. Of the 26, experts were in consensus on the relative importance of 21. The literature suggests that diffusion of PV technologies is influenced by complex technical, economic, and social factors. Similarly, the experts saw influence from financial, environmental, and energy supply (e.g., electrical reliability) factors. They saw emergent barriers to adoption as being financial, technical, institutional, and knowledge factors. They considered the most important factors influencing adoption to be financial motivations (e.g., subsidies) and financial barriers (e.g., high upfront costs); they considered the least important factors to be environmental motivations (e.g., environmental stewardship) and technical barriers (e.g., concerns with roof mounting). With this knowledge, the authors develop an adoption framework for household PV that describes the interaction among the identified motivations and barriers. This framework informs policy recommendations for Santiago, Chile, and contributes to the body of literature exploring the interconnected systems of factors that influence civil infrastructure in general and PV adoption in particular

Access to financial services: the case of the ‘Mzansi’ account in South Africa

The presence of rationing of financial services in the developing countries is a major obstacle to achieving sustainable growth. In recent years there have been co-ordinated efforts to increase the level of financial inclusion, i.e. to reduce the supply-side constraints restricting access to finance. This paper aims to understand household’s latent behaviour decision making in accessing financial services, by analysing an entry level Mzansi account in South Africa. The willingness to access financial services is not taken as given, but it is instead defined by perceptions and attitudes. The Mzansi intervention is appealing to individuals with basic but insufficient financial education. Aspirations seem to be very influential in revealing the choice of financial services and to this end, Mzansi is perceived as a pre-entry account not meeting the aspirations of individuals aiming to climb up the financial services ladder

Information behaviour in construction project management teams: Contradictions, motivations and influencing factors

This research seeks to understand how teams involved in large complex construction projects share and use information. The context of the research is project team information behaviour within early stage UK local government projects. Project tasks are commonly undertaken in a collaborative manner, modified by situational factors which give rise to informational activities which are recognised as information behaviour. However, there is limited research on collaborative information behaviour, especially focussed on activity in the complex and politically driven environment found within local government. Furthermore, information behaviour at the concept stage may be strategic as it will help to determine major decisions that may have considerable implications (e.g. financial or political), it has long term consequences and it affects the information behaviour of others through the leveraging of power and influence. Cultural historical activity theory, underpinned by critical realism and supported by repertory grid technique and constant comparative method, is used to interpret data from two local authority case studies to address the following questions: ‘What is the information behaviour of project teams involved in local government construction projects at concept stage?’ and ‘What contradictions and congruencies influence the intervening variables that shape information behaviour within the project teams of local government construction projects?’ Contradictions within the project activity system, in particular between the socio-political and the technical domains, cause dysfunctionality. Established project information structures cannot readily cope with this dysfunctionality and, as a result, information behaviour, hidden and overt, creates new structures and shapes micro-political activity not anticipated by project method. As such, the research uncovered significant tensions within the teams’ work activity which caused ambiguity, leading to the creation of ‘information spheres’, where information can be exchanged and nurtured - sheltered from political interventions and to project teams which are invisible to the project board. Where these tensions are not present, information exchange is enabled by value alignment and trust leading to big rooms and extended project teams, where authority is distributed to enable improvements to information exchange. The research also posits a model of project team information behaviour and seeks to make modest contributions to both the information behaviour and project management canon