The Economics of Cyber Security, Externality and Liability

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The economics of cyber security, externality and liability Cyber security is a best understood if we define the term cyber risk. Cyber risk is not just one specific risk but it is a group of various risks that differ in the technological world, these risks include, attack vectors, means and many others. Cyber security is a measure taken to eliminate cyber risks; it is a branch of information technology sometimes referred as information security that is applied to computers as well as to networks. The systems and networks must be protected, this will guarantee that the future generations of information technology will be able to protect the critical infrastructure and also be able to respond to attacks from the adversaries. Information technology has in the modern days become pervasive in every way. This ranges from phones and other small devices to the enterprise networks to the infrastructure that runs the economy. Improvements to the security of this information technology are essential now and for our future. Threats to a system and networks in operation include everything that can prevent critical applications from being able to satisfy their intended requirements. These threats includes; inside and outside misuse, malware as well as other system subversions, software faults, hardware malfunctions, human failures, physical damage and also the environmental disruptions. These systems occasionally fail even without any provocation externally, this comes as a result of flaws in design, operation bugs, wrong configuration and also system aging. Some threats also arise in the process of system acquisition as well as the code distribution processes. Serious security problems have also occurred as a result of stolen or discarded systems. When it comes to the large-scale systems that consists of many independent installations which includes among others the Domain

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