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Does cybersecurity maturity level assurance improve cybersecurity risk management in supply chains?

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  • Song, Ju Myung
  • Wang, Tawei
  • Yen, Ju-Chun
  • Chen, Yu-Hung

Abstract

This study uses analytical models to investigate whether requiring cybersecurity assurance or a particular maturity level for vendors or contractors will help them improve their cybersecurity management. Our findings suggest that, if a supplier decides on its preferred cybersecurity maturity level without knowing what level a contract requires, the supplier is more likely to exert more effort to improve its cybersecurity management. We also show that a buyer can incentivize the supplier to engage in improving cybersecurity risk management by imposing a reduced contractual price or a fine when a breach occurs. Our findings reveal the role played by cybersecurity maturity level assurance and we discuss practical implications.

Suggested Citation

  • Song, Ju Myung & Wang, Tawei & Yen, Ju-Chun & Chen, Yu-Hung, 2024. "Does cybersecurity maturity level assurance improve cybersecurity risk management in supply chains?," International Journal of Accounting Information Systems, Elsevier, vol. 54(C).
  • Handle: RePEc:eee:ijoais:v:54:y:2024:i:c:s1467089524000289
    DOI: 10.1016/j.accinf.2024.100695
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    References listed on IDEAS

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