Cybersecurity Budgeting: A Cyber Risk Perspective” updates the Gordon Loeb Model to help leaders set smarter, risk based cybersecurity budgets in an AI intensifying threat environment. The study shows that optimal cybersecurity spending generally should not exceed 37% of expected loss, giving executives a clear economic benchmark. The framework also aligns with new SEC rules and can be continuously updated as threats evolve.
Lawrence A. Gordon, EY Alumni Professor of Managerial Accounting and Information Assurance; Martin P. Loeb, professor emeritus of accounting and information assurance; and Lei Zhou, research scholar and academic director of the MS in Accounting program
Transactions on Engineering and Computing Sciences