Economics of IT Security Management: Four Improvements to Current Security Practices

The importance of effective management of IT security from an economic perspective increased in recent years because of the increasing frequency and cost of security breaches. Each security breach incurs monetary damage, corporate liability, and loss of credibility. This article presents four important elements that every IT security manager should consider while managing the security function from an economic perspective. The four elements are: estimation of security breach cost, a risk management approach, cost effective technology configuration, and value from deployment of multiple technologies.