Security Supply and Demand: An Economic Approach to Cybersecurity Risk Management

Security Supply and Demand: An Economic Approach to Cybersecurity Risk Management

Cybersecurity risk management is not a purely technical or theoretical endeavor. Information security investments now inform security supply with the aim of reducing data breaches and boosting public perception. However, the demand for greater spending doesn’t necessarily equate to improved defenses.


The disconnect between increased resource allocation and actual readiness stems from the idea that cybersecurity issues play out logically and can be resolved with the usual fixes. In practice, however, both cybersecurity outcomes and anticipated criminal behaviors may not align with rational expectations. Fortunately, there’s an unex ..