The Economic Case for Cyberinsurance

We present three economic arguments for cyberinsurance. First, cyberinsurance results in higher security investment, increasing the level of safety for information technology (IT) infrastructure. Second, cyberinsurance facilitates standards for best practices as cyberinsurers seek benchmark security levels for risk management decision-making. Third, the creation of an IT security insurance market redresses IT security market failure resulting in higher overall societal welfare. We conclude that this is a significant theoretical foundation, in addition to market-based evidence, to support the assertion that cyberinsurance is the preferred market solution to managing IT security risks.

Sharing Computer Network Logs for Security and Privacy: A Motivation for New Methodologies of Anonymization

Logs are one of the most fundamental resources to any security professional. It is widely recognized by the government and industry that it is both beneficial and desirable to share logs for the purpose of security research. However, the sharing is not happening or not to the degree or magnitude that is desired. Organizations are reluctant to share logs because of the risk of exposing sensitive information to potential attackers. We believe this reluctance remains high because current anonymization techniques are weak and one-size-fits-all--or better put, one size tries to fit all. We must develop standards and make anonymization available at varying levels, striking a balance between privacy and utility. Organizations have different needs and trust other organizations to different degrees. They must be able to map multiple anonymization levels with defined risks to the trust levels they share with (would-be) receivers. It is not until there are industry standards for multiple levels of anonymization that we will be able to move forward and achieve the goal of widespread sharing of logs for security researchers.Comment: 17 pages, 1 figur

A Distributed Economics-based Infrastructure for Utility Computing

Existing attempts at utility computing revolve around two approaches. The first consists of proprietary solutions involving renting time on dedicated utility computing machines. The second requires the use of heavy, monolithic applications that are difficult to deploy, maintain, and use. We propose a distributed, community-oriented approach to utility computing. Our approach provides an infrastructure built on Web Services in which modular components are combined to create a seemingly simple, yet powerful system. The community-oriented nature generates an economic environment which results in fair transactions between consumers and providers of computing cycles while simultaneously encouraging improvements in the infrastructure of the computational grid itself.Comment: 8 pages, 1 figur