What is Cyber Security? Part II: The Challenges of Regulating Cyber Protection

Policy Paper 173

The unique features of cyberspace, especially hyperconnectivity and the speed of information transfer, are at the heart of both the great benefits it brings to society and the huge dangers it poses. The tremendous damage liable to be caused by cyberattacks, combined with the absence of adequate incentives for investment in cyber protection, has created a market failure that justifies government intervention in the regulation of cyber security.