Cyberattacks on critical infrastructure: an economic perspective

Piotr Lis, Jacob Mendel

Research output: Contribution to journalArticle

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Abstract

The aim of this article is to analyze the economic aspects of cybersecurity of critical infrastructure defined as physical or virtual systems and assets that are vital to a country’s functioning and whose incapacitation or destruction would have a debilitating impact on national, economic, military and public security. The functioning of modern states, firms and individuals increasingly relies on digital or cyber technologies and this trend has also materialized in various facets of critical infrastructure. Critical infrastructure presents a new cybersecurity area of attacks and threats that requires the attention of regulators and service providers. Deploying critical infrastructure systems without suitable cybersecurity might make them vulnerable to intrinsic failures or malicious attacks and result in serious negative consequences. In this article a fuller view of costs and losses associated with cyberattacks that includes both private and external (social) costs is proposed. An application of the cost-benefit analysis or the Return on Security Investment (ROSI) indicator is presented to evaluate the worthiness of cybersecurity efforts and analyze the costs associated with some major cyberattacks in recent years. The “Identify, Protect, Detect, Respond and Recover” (IPDRR) framework of organizing cybersecurity efforts is also proposed as well as an illustration as to how the blockchain technology could be utilized to improve security and efficiency within a critical infrastructure.
Original languageEnglish
Pages (from-to)24-47
Number of pages24
JournalEconomics and Business Review
Volume5(19)
Issue number2
DOIs
Publication statusPublished - Jun 2019

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infrastructure
economics
domestic security
social costs
cost-benefit analysis
costs
service provider
assets
Military
threat
firm
efficiency
trend

Bibliographical note

Open Access journal licensed under a Creative Commons license -
CC BY-NC

Keywords

  • critical infrastructure
  • economics of cybersecurity
  • blockchain
  • globalized economy
  • smart grid

Cite this

Cyberattacks on critical infrastructure: an economic perspective. / Lis, Piotr; Mendel, Jacob.

In: Economics and Business Review, Vol. 5(19), No. 2, 06.2019, p. 24-47.

Research output: Contribution to journalArticle

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