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Economics - Research Paper Example

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The increase in cases of denial-of-service attacks, spams and botnets may be ascribed to incentives among the defenders being misaligned as well as skillful exploitation from attackers…
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Download file to see previous pages Undeniably, information security has evolved to be as significant to contemporary organizations as the security of perceptible physical resources. It is not surprising that the quickly increasing body of research dwells on issues of information security. Research should focus largely on the technical dynamics of the protection of information in computer-based systems through encryption, hardware controls as well as software and data controls. The behavioral dynamics associated with the prevention breaches in information security have attracted a lot of attention in the recent times among researchers. Conversely, there has been very little attention towards addressing the economic aspects of information security; particularly with the magnitude of resources that have been directed to improve information management by organizations, what these organizations require is a framework that will assist in deriving optimal levels of spending on information security. Economic perspectives typically recognize that even though some degree of investment in information security is noble, additional security is not always worth the associated costs (Bidgoli, 2006). Therefore, it is important to consider the manner in which vulnerabilities of information as well as losses that are linked to the vulnerability impact the ideal amount of resources that are supposed to be directed to making information secure.
For a wide variety of probability functions in regards to security breach, the ideal amount that should spent on information security is a rising function based in the degree of the vulnerability of the information. However, in some cases, the ideal amount to spend on security of information initially increases and later declines with similar degrees of vulnerability of information (Rao & Upadhyaya, 2009). The managers who are responsible for allocation of information security budgets should typically concentrate that is categorized in the mid-range of ...Download file to see next pagesRead More
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