the economics of cybersecurity · the economics of cybersecurity allan friedman research director,...
TRANSCRIPT
The Economics of Cybersecurity Allan Friedman
Research Director, Center for Technology Innovation
Fellow, Governance Studies
Brookings Institution
http://www.brookings.edu/techinnovation.aspx
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Uh oh…
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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 1 2010
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“cybersecurity”
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“cybersecurity”
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“cybersecurity”
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“cybersecurity”
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Need to disambiguate
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Scale
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Urgency
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Risk Evaluation
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Framing Matters
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Who pays?
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Asymmetric Information
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Externalities
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Insurance
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Market demand for transparency
“…not aware that investors
have asked for more
disclosure in this area”
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Transparency vs.
Accountability
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Data Breaches
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Network Effects
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“Cloud computing”
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The weakest link
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Risk
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Regulatio
n
Regulatory Spectrum
Laissez
Faire
Mandated
Standards Liability
Standards
&
Practices
Purchasin
g
Power