The security of information is a fundamental concern to organizations operating in the modern digital economy. There are technical, behavioral, and organizational aspects related to this concern. There are also economic aspects of information security. One important economic aspect of information security (including cybersecurity) revolves around deriving the right amount an organization should invest in protecting information. Organizations also need to determine the most appropriate way to allocate such an investment.

The security of information is a fundamental concern to organizations operating in the modern digital economy. There are technical, behavioral, and organizational aspects related to this concern. There are also economic aspects of information security. One important economic aspect of information security (including cybersecurity) revolves around deriving the right amount an organization should invest in protecting information. Organizations also need to determine the most appropriate way to allocate such an investment.

The Fourth Annual Forum on Financial Information Systems & Cybersecurity: A Public Policy Perspective, held on May 23, 2007 at the Robert H. Smith School of Business, brought together experts and industry professionals from around the globe to discuss risk management issues related to information security. The day included expert presentations followed by discussions that ranged from the extremely theoretical to the practical to the purely political, and the issues ranged from personal security risks to corporate and national security risks.

In the past few years, Americans have come to learn that security initiatives are expensive and, many times, unsuccessful. However, high cost security is more than a government issue, it is also an important business issue. In a digital economy, businesses must work hard to keep client and employee information safe and private. Unfortunately many businesses spend millions of dollars on security initiatives that never deliver the promised results.

Stories concerning cybersecurity issues are now common in the news media. Articles addressing the theft of laptop computers with entire confidential databases have topped the list in recent months. The need to protect the nations infrastructure, a large part of which is controlled by computer networks, has also been the subject of many recent news stories and government reports. In response to the stories and reports, computer security experts have been working hard to develop all sorts of technical solutions to prevent, or at least quickly detect and correct, cybersecurity breaches.

The Smith School has been awarded a four-year, $1.4 million grant by the U.S. Department of Education to fund a Center for International Business Education and Research (CIBER). This high honor designates the Smith School as a national resource center in international business education and research. There are only 31 CIBERs in the nation.

The information revolution has not only introduced new technologies, but has also changed the way business is conducted. Economic transactions increasingly take place via digital networks, and a critical part of this interconnectivity is the way organizations have integrated accounting and financial management systems with Internet-based applications.

Cyber risk can come from data breaches or cyber attacks, but to really root out cyber threats and prepare for risks, organizations need to take a new approach.