Number: RL32331
Title: The Economic Impact of Cyber-Attacks
Authors: Brian Cashell, William D. Jackson, Mark Jickling, and Baird Webel 
Abstract: This report surveys the state of knowledge on the cost of cyber-attacks and the economics of information security. First, it summarizes several studies that use stock market capitalization as a measure of the cost of cyber-attacks to victim firms. Second, it presents summaries of the existing empirical data on costs attributable to cyber-crime and computer worms and viruses. Third, it analyzes the reasons for the lack of statistical data. Fourth, it examines the efforts of the insurance industry to develop policies that cover cyber-risk. Finally, the report considers cyber-attacks as macroeconomic events. Appendices to this report include a summary of information risk assessment practices in a Fortune 500 manufacturing company and an overview of efforts by financial institutions and regulators to manage cyber-risk in that industry.
Pages: 41
Date: April 1, 2004