Cybersecurity Economics - Induced Risks, Latent Costs and Possible Controls

Abstract

Financial decisions indirectly affect and are affected by the effort towards Information Security. The 'Economics of Cybersecurity' should thus constitute a significant part of the Information Security Posture Assessment process and should be directly addressed in this context. As the complexity and interdependency of Information Systems augments and new technologies lead to the de-materialization of Information Systems assets, it becomes progressively evident that the conflicting interests and incentives of the various stakeholders of an Information System affect its overall Information Security Posture, perhaps even more significantly than technical or policy limitations do. This paper examines economic considerations from an Information Systems Security/Cybersecurity viewpoint and proposes new directions that may both help reduce the problem from a collective point of view, as well as lead to the creation of methodologies to ultimately integrate economics, along with technical and non-technical issues, into an Organisation's Information Security Posture Assessment process.