Economics of Internet Security Outsourcing: Simulation Results Based on the Schneier Model
نویسندگان
چکیده
Dynamic and complex information security risks facing organizations are forcing them to take a hard look at outsourcing to Managed Security Service Providers (MSSPs). The potential advantage of outsourcing is to improve security levels at lower costs. Potential risks of outsourcing to an MSSP includes service quality uncertainty and the business risk of MSSP bankruptcy. In this paper we present an expected utility approach for firms to evaluate the tradeoffs from outsourcing Internet security based on a simulation of the Schneier model of Internet security decision-making. We report simulation results that the MSSP outsourcing decision is relatively insensitive to variation in service quality but hypersensitive to the business risk of MSSP bankruptcy.
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