The Better Business Bureau is advising small business owners to consider using the Gordon-Loeb Model to mitigate cyberattacks.
The prescription is part of the bureau announcing its State of Small Business Cybersecurity in North America report, which notes "half of small businesses reported they could remain profitable for only one month if they lost essential data."
Accounting and Information Assurance professors Martin Loeb and Lawrence A. Gordon at the University of Maryland’s Robert H. Smith School of Business developed the model, which guides spending to protect information to not exceed 37 percent of the expected loss resulting from a breach.
According to the bureau, its report “emphasizes the need not only for education and training, but for cost-benefit analysis of cybersecurity measures.” The bureau further advises small business owners to use the Gordon-Loeb Model to “estimate their risk from cybersecurity attacks and calculate an appropriate investment in prevention.”
Related video: The Gordon-Loeb Model via whiteboard animation.