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Investing in IT Security: How to Determine the Maximum Threshold

Author

Listed:
  • Amanda Eisenga

    (Lutgert College of Business, Florida Gulf Coast University, USA)

  • Travis L. Jones

    (Lutgert College of Business, Florida Gulf Coast University, USA)

  • Walter Rodriguez

    (Lutgert College of Business, Florida Gulf Coast University, USA)

Abstract

Investing in information technology (IT) security is a critical decision in the digital age. And, in most organizations, it is wise to allocate a significant amount of resources to IT infrastructure. However, it is difficult to determine how much to invest in IT as well as quantifying the maximum threshold where the rate of return of this investment is diminishing. The main research question in this paper is: how much and what financial resources should be allocated to IT security? This paper analyzes different practices and techniques used to determine the calculation for investments in IT security and analyzes and recommend some suitable methods for deciding how much should be invested in IT security.

Suggested Citation

  • Amanda Eisenga & Travis L. Jones & Walter Rodriguez, 2012. "Investing in IT Security: How to Determine the Maximum Threshold," International Journal of Information Security and Privacy (IJISP), IGI Global, vol. 6(3), pages 75-87, July.
    • Handle: RePEc:igg:jisp00:v:6:y:2012:i:3:p:75-87
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    Citations

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    Cited by:

    1. Daniel Schatz & Rabih Bashroush, 0. "Economic valuation for information security investment: a systematic literature review," Information Systems Frontiers, Springer, vol. 0, pages 1-24.
    2. Xiaofei Qian & Xinbao Liu & Jun Pei & Panos M. Pardalos & Lin Liu, 2017. "A game-theoretic analysis of information security investment for multiple firms in a network," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(10), pages 1290-1305, October.
    3. Daniel Schatz & Rabih Bashroush, 2017. "Economic valuation for information security investment: a systematic literature review," Information Systems Frontiers, Springer, vol. 19(5), pages 1205-1228, October.
    4. Xinbao Liu & Xiaofei Qian & Jun Pei & Panos M. Pardalos, 2018. "Security investment and information sharing in the market of complementary firms: impact of complementarity degree and industry size," Journal of Global Optimization, Springer, vol. 70(2), pages 413-436, February.

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