State-of-the-Art of the Economics of Cyber-Security and Privacy

Abstract

Box 1 Challenges in Estimation of Risk Metrics __________________________________________ Box 2 Important Standards in the PACS Domain ________________________________________ Box 3 The Economics of Big Data Analysis _____________________________________________ Box 4 Information Externalities and Pricing ____________________________________________ IPACSO-A Coordination Action under the FP7 DG CNECT Trustworthy ICT Program © IPACSO 2 IPACSO D4.1-p. 5 Preface IPACSO is an EU-funded CoOrdination and Support Action (CSA) project aimed at supporting Privacy and Cyber-security innovations in Europe. The key aim is to support ICT Security innovators with state of the art innovation methodologies and best practices that improve their overall innovation process. IPACSO will focus on adapting existing innovation methodologies available in other domains, both general and specific, optimizing these approaches for the Privacy and Cyber-Security (PACS) market domains. Ultimately, IPACSO will combine innovation support modules based on establish methods (both generic and technology-specific), with new innovation support approaches geared toward the specific needs of the European PACS marketplace. Market information of high-relevance to PACS innovators will also be included in the project. From an outreach perspective, innovators working alongside IPACSO will be able to increase their understanding of existing methodologies, best practices, market considerations, economic incentives and share key opinions alongside other peer experts in the PACS domain. By reaching out to IPACSO, privacy and cyber-security innovators will be put in touch with other innovators, business support organizations and financing. With IPACSO, privacy and cyber-security innovators will be getting additional promotion for their innovations, as IPACSO specifically focuses on innovations. The following scheme outlines in brief the relation of the two deliverables D4.1 and D4.2 to the developed Privacy and Cyber-Security Market Scheme. It enables the reader to see what is covered in the different deliverables and to what deliverable he/she needs to turn in order to find the information of interest. Cyber-Security Market Scheme and IPACSO Deliverable IPACSO-A Coordination Action under the FP7 DG CNECT Trustworthy ICT Program © IPACSO 2 IPACSO D4.1-p. 6

Pricing privacy – the right to know the value of your personal data

“…However, individual-based valuations (e and f) are also incomplete, because they are not incentive-compatible. 53 Especially for willingness to pay to protect data (f) it has been proven that it does not capture the actual perceived value of personal data. 54 A hybrid methodology which compares a bottom-up and a top-down approach has been proposed by .…”

SEConomy: A Framework for the Economic Assessment of Cybersecurity

“…Proactive Mitigation Cost (PMC). These costs are mapped based on proactive and reactive measures [12]. The P M C presented in Eqn.…”

Cyber Security and the Role of Intelligent Systems in Addressing its Challenges

“…A wide range of topics are addressed, including issues pertaining to the political, criminal, and economic aspects of cyber security and more generally to the cyber ecosystem [Choucri 2013]. In these areas, cyber security is expanding and considering classic issues in economic domains, such as economical models based on the financial aspects of cyber security, cyber insurance, commercial cyber security issues, and cyber currencies [Jentzsch 2016]; judicial domains, such as issues of cyber intellectual properties [Svantesson 2016] and the development of cyber law, cyber contracts, methods to monitor and uphold cyber laws, and privacy protection laws; international domains, such as government accountability regarding cyber attacks, international cyber treaties, cyber deterrence, the development of cyber weapons and cyber offenses, cyber trade monitoring, and cyber crime [Aggarwal et al 2014]; social domains, such as societal response to cyber, privacy issues, and the future effects of cyber on society [Kral 2014]; and cultural domains, such as cyber-inspired poetry, music, film, and theater.…”