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Economic Impact of Network Security Threats

In June 2001, independent research firm Computer Economics released the results of a study on potential privacy problems in different industry sectors. Banking and finance organizations were determined to be the most susceptible to privacy management problems. The transportation, wholesale, and retail industries also ranked high on the privacy problem susceptibility index compiled by Computer Economics. The index is based on several factors, including the speed at which these sectors are moving into electronic commerce and Web-based customer service activities and the level of privacy planning and protection that has been put into place by organizations within the sectors. The sectors that are the most vulnerable. | Cisco Systems White Paper Economic Impact of Network Security Threats The first in a series entitled Network Security Investment The Executive ROI Briefcase this white paper describes the dynamics in today s business climate that are driving network security requirements and provides an understanding of the threats facing business leaders today. It includes an appendix that describes malicious code attacks that have occurred in the recent past. Other white papers in the series include Privacy Protection Depends on Network Security This white paper reviews some of the laws that mandate consumer privacy protection and how network security helps ensure data privacy. Recovery After a Breach in Network Security This white paper discusses best practices for disaster recover that involve information security and IT professionals as well as law enforcement. The Return on Investment for Network Security This white paper quantifies the value of network security with regard to the economic consequences of a security breach. Action Steps for Improving Information Security This white paper describes the steps you should take to ensure a secure network infrastructure. Executive Summary As an organization s dependency on computers and network communications increases so does its vulnerability to information security compromises. Almost every week the media reports on new computer crimes system break-ins malicious code attacks and the ever-growing threat of cyber terrorism. Current research on network security shows three realities that organizations must consider Threats to computer systems and networks are increasing Damage caused by malicious attacks is rising Systems without appropriate security are easy hits for hackers Many types of information must be protected by law. In the United States the Gramm-Leach-Bliley Act requires companies to notify consumers of their privacy policies and to provide opt-out provisions for consumers who do not want their personal information .