cover image: A Review of the Economic Costs of Cyber Incidents (English)

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A Review of the Economic Costs of Cyber Incidents (English)

24 Sep 2024

Given the rapid digitization of societies and the increase in costly and sophisticated cyber incidents, there is a rising need to prioritize cybersecurity in the investment agendas of economic actors, especially, governments and firms. However, a major bottleneck in mainstreaming cybersecurity investments is the unclarity in the returns and the unidentified link between cyber incidents and economic performance. This literature survey brings together empirical studies on the direct and indirect costs of cyber incidents, highlighting issues in the study of risk-based approaches based on current estimates that could lead to misinformed decisions. First, this survey identifies the vast variety of unfounded estimates of the cost of cyber incidents. Second, the analysis dives into the difficulty of assessing the full spectrum of costs due to the existence of nonnegligible indirect costs. This article argues that to accurately protect cyberspace, policymakers and stakeholders should aim to understand the full spectrum of economic costs of cyber incidents by promoting research through data collection efforts.
digital government financial institutions private sector development financial sector development other fragility information and communication technologies world digitization cyber crime ict policies ict strategy conflict and violence digital economy strategy peace operations and conflict management ict solutions policy and regulation national protection and security ict services cyber security for banking banking strategy and risk management ict methods and procedures

Authors

Vergara Cobos,Estefania Belen, Cakir,Selcen

Disclosure Date
2024/09/24
Disclosure Status
Disclosed
Doc Name
A Review of the Economic Costs of Cyber Incidents
Pages
28
Product Line
Advisory Services & Analytics
Published in
United States of America
Rel Proj ID
1W-The Economic Rationale Of Cybersecurity -- P178769
TF No/Name
TF0B8289-Cybersecurity Estimating Economic Benefits
Unit Owning
Infra - Chief Economist Infra (INFCE)
Version Type
Final
Volume No
1

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