Gordon-Loeb Model Gives Framework for Cybersecurity Investment Decisions

COLLEGE PARK, Md., May 10, 2016 /PRNewswire-USNewswire/ -- A critical question confronting C-suite executives and boards of directors in today's digital world is: How much should our organization invest in cybersecurity? Although there is no "one size fits all" answer, professors Lawrence A. Gordon and Martin P. Loeb from the University of Maryland's Robert H. Smith School of Business developed a mathematical economic model that provides a general framework for answering the above question.

Since its publication, the model has been widely acclaimed in both the academic and practitioner literature. The model shows that it is generally inappropriate for firms to invest more than 37 percent of the expected losses from cybersecurity breaches.

The model also shows that the optimal amount to spend on cybersecurity activities does not always increase with increases in the information set's vulnerability.

A three minute video describing four simple steps for using the Gordon-Loeb Model can be found at: https://www.youtube.com/watch?v=cd8dT0FuqQ4.

For more information on the model, go to: https://en.wikipedia.org/wiki/Gordon-Loeb_Model and/or contact [email protected].

About the University of Maryland's Robert H. Smith School of Business 

The Robert H. Smith School of Business is an internationally recognized leader in management education and research. One of 12 colleges and schools at the University of Maryland, College Park, the Smith School offers undergraduate, full-time and part-time MBA, executive MBA, online MBA, specialty masters, PhD and executive education programs, as well as outreach services to the corporate community. The school offers its degree, custom and certification programs in learning locations in North America and Asia.

CONTACT: Greg Muraski, 1-301-4055283, [email protected]

SOURCE Robert H. Smith School of Business

Related Links

http://www.rhsmith.umd.edu