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Information Segmentation and Investing in Cybersecurity

DOI: 10.4236/jis.2021.121006, PP. 115-136

Keywords: Cybersecurity Investments, Information Segmentation, Economics of Information Security

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Abstract:

This paper provides an analysis of how the benefits of information segmentation can assist an organization to derive the appropriate amount to invest in cybersecurity from a cost-benefit perspective. An analytical model based on the framework of the Gordon-Loeb Model ([1]) is presented that provides a set of sufficient conditions for information segmentation to lower the total investments in cybersecurity and the expected loss from cybersecurity breaches. A numerical example illustrating the insights gained from the model is also presented.

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