Economics of Privacy

¶ … Security

Area 1 Role of Insurance

The role of insurance in the economics of information of security is a necessary component to success of this holistic approach to operational or tactical strategy. Insurance designates that varying parties must "ante up" in order to receive the benefits of their venture. The striking idea about this relationship is that information is no different than any other insurable item and any application of the insurance markets may very well be applicable in the information security arena.

Area 2 Construction of a Market for Vulnerabilities

By making the exposure of information a dangerous action, that can be profited off of, suggests that information security is a market that can be played to make profits. The unique qualities of information and its power to impact on the unknown allows this "good" to be treated in this manner. Finding holes in security is a useful task to help prevent larger, more serious breaches of safety that may be more impactful in the long run.

Area 3 Strategic Role of Security

Any strategic outlook of any firm must be aware of the inherent threats to its well being. Strategies are based upon assumptions and facts, as they must be synthesized to make the organization functional at an economic level. The role of security within this strategy must be developed by leadership and understood by all. The strategic outlook of any firm is of the highest priority, and any inclusions of information security are a reflection of this greater idea. Security in this manner should explicitly support organizational strategies.

Area 4 Economics of Privacy

Privacy like anything else in this world lives off the give and take of its possessors. Privacy being marketed is somewhat alarming as there is some expected levels of this ideal supported in our historic culture. As that culture continues to erode, so does the privacy of information. As long as money and profits are the primary goal of our society, it should be no surprise that markets develop that trade in such abstractions as privacy.

Area 5 Role of Individual Incentives