Security Informatics Essay Example | Topics and Well Written Essays - 750 words

Security Informatics - Essay Example Sine examples of well known companies that have suffered huge losses due to cyber attackers corrupting or manipulating their data resources are Yahoo, AOL, E-bay, Citibank and Egghead.com. This effectively brings us to the first reason why firms share information regarding their security state. To strengthen one’s information security numerous organizations recognized a key factor being the gathering, analysis and sharing of information related to the actual, as well as all unsuccessful attempts at, computer security beaches. This very notion lead to the formation of the industry- based Information Sharing and Analysis Centers (ISACs) which aimed at enhancing protection of the cyber infrastructure of various firms. By this mutual collaboration, despite the fact that various companies reveal information that could be considered embarrassing regarding their security state, they benefit greatly in other ways. These being on receiving end of various security practices and solution s which would result in the production of much more secure products and an increase in the overall market demand for security enhancing software and hardware. True there are several benefits if the firm chooses not to disclose information about their security state in terms of financial costs incurred post disclosure, the negative publicity that might result in loss of market shares and an increase in the likelihood of leakages by increasing the number of holder’s of the information regarding sensitive security flaws. However the firms after a cost-benefit analysis chose to share security information due to two key advantages. The first is the private firm specific benefit which aims at preventing further security breaches and future fraud losses. By spending on identifying and repairing existing vulnerabilities the firm cuts costs in terms a prevention of future security threats. Furthermore the increased amount of sales due to an acquisition of a better security reputation and goodwill as a result of these measures more than covers up the initial financial cost invested. By reporting a security breach to central monitoring the firm effectively sends a strong message to the customer that portrays them as responsible, committed to developing rigorous security procedures designed to protect and take care of the customer and a company more reliable as well as secure. This positive image does wonders for the company in terms of profitability and market share. The industry benefits are the other reason for information sharing by companies. As there is an increase in the overall customers’ trust in transacting with a particular firm it directly affects the overall market size within the industry. This increase in the customer base simply by addressing their fears of privacy and information security related issues leads to more cross selling and upsellling by companies. B2C e-commerce is also positively impacted for the very same reason. Look at the wo nders Amazon’s efforts in terms of protecting the integrity of customers’ data and increasing confidence in online purchases has paved way for numerous online businesses to initiate operations and be acceptable to consumers. There are three dimensions of uncertainty that exist in vulnerabilities. Firstly there is representativeness, which is mainly applied in order to assess the probability that an object or an event A belongs another process B. Availability of