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The Economics of Cybersecurity

The Economics of Cybersecurity. Allan Friedman Research Director, Center for Technology Innovation Fellow, Governance Studies Brookings Institution http :// www.brookings.edu / techinnovation.aspx. Uh oh…. http:// www.brookings.edu / techinnovation.aspx.

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The Economics of Cybersecurity

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  1. The Economics of Cybersecurity • Allan Friedman • Research Director, Center for Technology Innovation • Fellow, Governance Studies • BrookingsInstitution • http://www.brookings.edu/techinnovation.aspx

  2. Uh oh… http://www.brookings.edu/techinnovation.aspx

  3. Topics discussed in Economist cover article Military Strategy Critical Infrastructure US Law & Policy Economic Espionage International Law & Policy Intelligence Community Cyber Terrorism Technology Issues Cyber Crime Distribution of paragraph by topic Economist, July 1 2010 http://www.brookings.edu/techinnovation.aspx

  4. “cybersecurity” http://www.brookings.edu/techinnovation.aspx

  5. “cybersecurity” http://www.brookings.edu/techinnovation.aspx

  6. “cybersecurity” http://www.brookings.edu/techinnovation.aspx

  7. “cybersecurity” http://www.brookings.edu/techinnovation.aspx

  8. Need to disambiguate http://www.brookings.edu/techinnovation.aspx

  9. Scale http://www.brookings.edu/techinnovation.aspx

  10. Urgency http://www.brookings.edu/techinnovation.aspx

  11. Risk Evaluation http://www.brookings.edu/techinnovation.aspx

  12. Framing Matters http://www.brookings.edu/techinnovation.aspx

  13. http://www.brookings.edu/techinnovation.aspx

  14. http://www.brookings.edu/techinnovation.aspx

  15. Who pays? http://www.brookings.edu/techinnovation.aspx

  16. Asymmetric Information http://www.brookings.edu/techinnovation.aspx

  17. Externalities http://www.brookings.edu/techinnovation.aspx

  18. Insurance http://www.brookings.edu/techinnovation.aspx

  19. Market demand for transparency “…not aware that investors have asked for more disclosure in this area” http://www.brookings.edu/techinnovation.aspx

  20. Transparency vs. Accountability http://www.brookings.edu/techinnovation.aspx

  21. Data Breaches http://www.brookings.edu/techinnovation.aspx

  22. Network Effects http://www.brookings.edu/techinnovation.aspx

  23. “Cloud computing” http://www.brookings.edu/techinnovation.aspx

  24. The weakest link http://www.brookings.edu/techinnovation.aspx

  25. Risk http://www.brookings.edu/techinnovation.aspx

  26. Questions? Comments? • Allan Friedman • afriedman@brookings.edu • http://www.brookings.edu/techinnovation.aspx

  27. Regulatory Spectrum Mandated Standards Standards & Practices Purchasing Power Laissez Faire Regulation Liability http://www.brookings.edu/techinnovation.aspx

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