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Governments, military, corporations, financial institutions, hospitals, and private businesses amass a great deal of confidential information about their employees, customers , products, research and financial status. Most of this information is now collected, processed & stored on electronic computers and transmitted across networks to other computers.
Should confidential information about a businesses customers or finances or new product line fall into the hands of a competitor or a black hat hacker, a business and its customers could suffer widespread, irreparable financial loss, as well as damage to the company's reputation. Protecting confidential information is a business requirement, and in many cases also an ethical and legal requirement. Hence a key concern for organizations today is to derive the optimal information security investment. The renowned Gordon-Loeb Model actually provides a powerful mathematical economic approach for addressing this critical concern.
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