U C B E R K E L E Y

U C B E R K E L E Y C E N T E R F O R L O N G - T E R M C Y B E R S E C U R I T Y C L T C W H I T E P A P E R S E R I E S The Transaction Costs of Municipal Cyber Risk Management R O W L A N D H E R B E R T - F A U L K N E R C L T C W H I T E P A P E R S E R I E S C L T C W H I T E P A P E R S E R I E S The Transaction Costs of Municipal Cyber Risk Management R O W L A N D H E R B E R T - F A U L. [...] Using semi-structured interviews with local officials, industry professionals, legal experts, and researchers; extensive document analysis of government and industry publications and media reports; and a review of cybersecurity scholarship, I investigate the source, nature, magnitude, and timescale of the cybersecurity transaction costs that municipalities bear. [...] Using semi-structured interviews with local officials, industry professionals, legal experts, and researchers; extensive document analysis of government and industry publications and media reports; and a review of cybersecurity scholarship, I investigate the source, nature, magnitude, and timescale of the cybersecurity transaction costs that municipalities bear. [...] 10 T H E T R A N S A C T I O N C O S T S O F M U N I C I P A L C Y B E R R I S K M A N A G E M E N T Cyber Hygiene Improvements Humans are the primary gateway to cyberattacks.15 Workforce training, software and hard- ware upgrades, regular system audits and testing, and the development and implementation of network security frameworks are central to strengthening the security posture of organizati. [...] 20 T H E T R A N S A C T I O N C O S T S O F M U N I C I P A L C Y B E R R I S K M A N A G E M E N T widely critiqued for their assumptions about the normative role of municipal government56 and their centering of the profit motive vis-à-vis public goods and services.57 Despite those critiques, the reality of our municipal infrastructure and the threats it faces —compounded by the lack of cybersec.