The Economics of Cybersecurity Allan Friedman Research Director, Center for Technology Innovation Fellow, Governance Studies Brookings Institution
1 Uh oh…
2 Topics discussed in Economist cover article Critical Infrastructure Economic Espionage Intelligence Community Cyber Terrorism Cyber Crime Military Strategy US Law & Policy International Law & Policy Technology Issues Distribution of paragraph by topic Economist, July
3 “cybersecurity”
4 “cybersecurity”
5 “cybersecurity”
6 “cybersecurity”
7 Need to disambiguate
8 Scale
9 Urgency
10 Risk Evaluation
11 Framing Matters
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14 Who pays?
15 Asymmetric Information
16 Externalitie s
17 Insurance
18 Market demand for transparency “…not aware that investors have asked for more disclosure in this area”
19 Transparency vs. Accountability
20 Data Breaches
21 Network Effects
22 “Cloud computing”
23 The weakest link
24 Risk
Questions? Comments? Allan Friedman
26 Regulatio n Regulatory Spectrum Laissez Faire Mandated Standards Liability Standards & Practices Purchasin g Power