{"id":14169,"date":"2015-10-02T14:34:06","date_gmt":"2015-10-02T14:34:06","guid":{"rendered":"https:\/\/one.sightlinemg.com\/c4isrnet\/uncategorized\/2015\/10\/02\/commentary-a-cyber-sitrep\/"},"modified":"2026-08-08T17:58:00","modified_gmt":"2026-08-08T17:58:00","slug":"commentary-a-cyber-sitrep","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/c4isrnet\/cyber\/2015\/10\/02\/commentary-a-cyber-sitrep\/","title":{"rendered":"Commentary: A cyber sitrep"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Cyber crime has basically grown unchecked. This rapidly expanding threat has organizations and the administration deeply concerned. A recent report looked at the projected cost of cyber crime and what is currently being spent to address the threat, and that is extremely lopsided \u2014 or is it?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The current estimate for cybersecurity spending is about $250 billion annually and that is no small sum. This figure is expected to increase through 2030 to hit $500 billion. Now we must put that figure in context: The financial impact of cyberattacks is expected to climb to $1.2 trillion by 2030.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On the other side of this complex issue are the financial benefits of the Internet. The same study projects that the global financial benefits created by using the Internet will grow faster than the costs of cyberattacks and hit $160 trillion by 2030.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When you think about the spending level and the tremendous loss that is still projected to take place, a number of questions arise:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>What would the financial impact of cyberattacks be if we spent 50 percent (say $750 billion) more?<\/li><li>What would the financial impact of cyberattacks be if we spent 50 percent (say $250 billion) less?<\/li><li>What would we have to spend to reduce the financial impact of cyberattacks by 50 percent (say $500 billion) less?<\/li><li>What might the overall financial benefit of using the Internet be if we could reduce the threats\/risks by 50 percent?<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">These are important questions and questions cybersecurity professional would ask.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Given the pace with which the cyber threat environment is advancing, the U.S. can no longer continue to do things as it has in the past. If you examine the risk and the number of threat actors that are working to compromise the U.S., the country is severely outnumbered several to one. Stop for a moment and think about the number of activists, criminals, organized crime entities, terrorists and rogue nation states that are all targeting U.S. systems and are feverously working to create new cyber weapons that give them an advantage in the cyber conflict domain. They pose a formidable challenge.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Given the current and projected figures for cyber risks, risk actors and cyberattack financial effect, you would expect new approaches. However, that is not necessarily the case. Some organizations look at the risk \u2014 all of the projected costs associated with a cyber compromise of their records \u2014 and examine the likelihood a successful attack and calculate the overall costs\/risk. This is traditional business cost\/benefit analysis. Doing the calculation and using the 2030 numbers identified above, the cost associated with the cyber risk is less than 1 percent of revenue. After that analysis, you can see why they decide to maintain the current level of funding and in some cases actually reduce the funding. In fact, one critical infrastructure provider reduced their cybersecurity budget by over 10 percent.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Many now believe cyberattacks are a cost of doing business just like shoplifting and retail theft that is often given the fancy title of &#8220;inventory shrinkage.&#8221; One study puts the retail inventory shrinkage average at about 1.7 percent of gross sales, which is more than double the 2030 cyberattack costs versus revenues estimate. Perhaps a study should be conducted using the same approach but looking at the theft of intellectual property.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The United States is the country that is most reliant on the Internet and, therefore, we have the most to lose. That mandates the U.S. leverage our most creative minds to concentrate on this issue, come up with a new and unique approach to lessen the financial expense associated with cyber defense, and reduce the overall risks of cyberattacks as well as successful attacks and breaches.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em><strong>RELATED:<\/strong>\u00a0<a href=\"https:\/\/event.on24.com\/eventRegistration\/EventLobbyServlet?target=reg20.jsp&amp;referrer=&amp;eventid=1046295&amp;sessionid=1&amp;key=EAEE044247F691BCA2645DDAE54F7EFE&amp;regTag=&amp;sourcepage=register\">Army NETCOM Deputy Commander COL David Isaacson will discuss strengthening military network security in a free webcast Oct. 20<\/a>.\u00a0<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The retail industry accepts a certain amount of loss as &#8220;inventory shrinkage.&#8221; Is it time to accept cyberattacks as a similar cost of doing business?<\/p>\n","protected":false},"author":7,"featured_media":25506,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":10,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[10,16],"tags":[],"coauthors":[858,888],"class_list":["post-14169","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cyber","category-it-networks"],"acf":{"subheadline":"","legacy_arc_id":"UPUGFJ37LZH5NIJLZ67GYAVWYU","arc_canonical_url":"\/2015\/10\/02\/commentary-a-cyber-sitrep\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented By:"},"yoast_head":"<!-- This site is optimized 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