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TRANSCRIPT
Cyber Security Investment in the Age of Big Data: Reassessment of the Gordon-Loeb Model and Application to Critical
Infrastructure Protection
Dimitri Percia Davidab, Marcus Matthias Keuppb, Solange
Ghernaoutia, and Alain Mermoudab
a Swiss Cybersecurity Advisory and Research Group, University of Lausanne b Military Academy at ETH Zurich
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Agenda
Introduction 2’
The economics of information security
Investigating investment dynamics in cybersecruity
Extending the GL model 8’
The impact of Big Data Analytics on the GL model
Suggesting a multi-period model
Relaxing the assumption of continuity
Application to Critical Infrastructure Protection 2’
Concluding comments 2’
Further research 1’
Q&A and discussion 5’
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Introduction
Economics of Information Security as a complementary approach
Cyber Security issues = bad incentives + bad design
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Introduction
Investigating investment dynamics in cybersecruity
SINGLE PERIOD MODEL
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Introduction
Investigating investment dynamics in cybersecruity
MULTI-PERIOD MODEL
Cost of cyber security failure, S(Z, v)L
Cost DISCONTINUOUS FUNCTION
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Extending the GL model
The impact of Big Data Analytics on the GL model
Security Analytics: from bad signatures to bad actions
MINIMIZING COSTS
CONVENTIONAL CYBERSECURITY MEANS LIMITED SUCCESS
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Extending the GL model
The impact of Big Data Analytics on the GL model
Security Analytics: from bad signatures to bad actions
BAD SIGNATURES BAD ACTIONS
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Extending the GL model
The impact of Big Data Analytics on the GL model
From resilience to anticipation: the next generation of information technologies
Real time analytics
Early warnings
Dynamic detection
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Extending the GL model
1st impact: Suggesting a multi-period model
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Extending the GL model
2nd impact: Relaxing the assumption of continuity
Cost of cyber security failure, S(Z, v)L
Cost of cyber security investment, Z
Total cost, Z+S(Z, v)L
Optimal cyber security investment Cost
Optimal amount of cyber security investment, Z* Investment
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Extending the GL model
2nd impact: Relaxing the assumption of continuity
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Application to CIP
An urgent need for efficiency and effectiveness improvement
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Concluding comments
Extending the GL model for radically innovative and disruptive technologies
Cost of cyber security failure, S(Z, v)L
Cost of cyber security investment, Z
Total cost, Z+S(Z, v)L
Cost
Optimal amount of cyber security investment, Z*
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Further research
A game theory experiment for collecting data
An econometric model for testing our hypothesis
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Q&A and discussion