The Economic Impact of Cybersecurity Threats on Businesses in Developing Economies: a Cost-Benefit Analysis of IT Security Investments

EasyChair Preprint 13788

Abstract

Cybersecurity threats pose significant risks to businesses in developing economies, potentially undermining economic growth and stability. This study analyzes the economic impact of cybersecurity threats on businesses in these regions and evaluates the cost-benefit of IT security investments to mitigate these risks.

Cybersecurity Threats and Economic Impact: The research begins by identifying common cybersecurity threats faced by businesses in developing economies, including malware, ransomware, phishing attacks, and data breaches. It quantifies the economic impact of these threats, such as financial losses, operational disruptions, reputational damage, and loss of customer trust. The study presents data and case studies illustrating the severe consequences of inadequate cybersecurity measures.

Cost of Cybersecurity Threats: The study details the direct and indirect costs associated with cybersecurity incidents. Direct costs include financial losses from fraud, ransom payments, and regulatory fines, while indirect costs encompass lost productivity, recovery expenses, and long-term reputational damage. An economic model is developed to estimate these costs, providing a comprehensive view of the financial burden on affected businesses.

IT Security Investments: The research examines various IT security investments that businesses can make to protect against cybersecurity threats. These investments include advanced threat detection systems, encryption technologies, employee training programs, and the implementation of security best practices. The study assesses the costs of these investments and compares them to the potential savings from avoiding cybersecurity incidents.

Keyphrases: Cybersecurity, IT security investments, business resilience, cost-benefit analysis, cybersecurity strategy, developing economies, economic impact, financial losses, policy recommendations

@booklet{EasyChair:13788,
  author    = {Kaledio Potter and Dylan Stilinki},
  title     = {The Economic Impact of Cybersecurity Threats on Businesses in Developing Economies: a Cost-Benefit Analysis of IT Security Investments},
  howpublished = {EasyChair Preprint 13788},
  year      = {EasyChair, 2024}}