Learn how to get around misguided thinking that leads to executive under investment in cyber security, and secure the resources you need. You'll learn how to: - Work around CEO and CFO human biases - Motivate decision makers to invest more in cyber infrastructure - Replace your CEO’s mental model with new success metrics - Compare your company’s performance with similar firms to overcome executive overconfidence Watch the full video recording!

1. A Behavioral Science Perspective
WHY EXECUTIVES UNDERINVEST
IN CYBERSECURITY
HackerOne + ideas42 Webinar | October 10, 2017

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We use insights from the behavioral sciences
to design solutions to some of the world’s most persistent
social problems.
What is ?

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WHAT WE’LL
COVER
TODAY • Dive into why executives underinvest in
cybersecurity
• Examine using the lens of behavioral
science
• Point to steps security executives and
professionals can take to motivate decision
makers to invest more in cybersecurity

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WE DID OUR RESEARCH!
60+ Expert Interviews
120+ Research Articles

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A QUICK PRIMER ON BEHAVIORAL SCIENCE
odd choice.

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© 2015 ideas42 6
4 behavioral reasons
why executives underinvest in cybersecurity
and what you can do about it

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1. Thinking about risk differently

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CISO: They aren’t making patches
for these legacy servers anymore, so
we can’t update the firmware,
leaving us open to attack. They
should be replaced as soon as
possible.
PROBLEM: DIFFERENT WAYS OF DESCRIBING AND
THINKING ABOUT RISKS
CEO: What does that
have to do with the
price of codfish in
China?

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PROBLEM: DIFFERENT WAYS OF DESCRIBING AND
THINKING ABOUT RISKS
CISO: Risks to
security
infrastructure
CEO: Risks to the
organization as a
whole

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SOLUTION: REFRAME RISKS IN VIVID TERMS FOR
EXECUTIVES
Cyber Problem
Legacy servers are
unpatched and need
to be replaced or
else risk an attack
Org Problem
Legacy servers are
where the accounting
system lives, and if
that goes down we’ll
lose all our financial
data
TRANSLATION

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SOLUTION: REFRAME RISKS IN VIVID TERMS FOR
EXECUTIVES
Cyber Problem
Legacy servers are
unpatched and need
to be replaced or
else risk an attack
Org Problem
Legacy servers are
where the accounting
system lives, and if
that goes down we’ll
lose all our financial
data
TRANSLATION
Ok, take my
$$$

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2. Opposing mental models

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PROBLEM: OPPOSING MENTAL MODELS
Chaos and complexity Simplified mental model

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PROBLEM: OPPOSING MENTAL MODELS
Simplified mental model
• Supports quick thinking
• Organize and integrate new information
• Make predictions about the future changes
• Influence attention

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PROBLEM: OPPOSING MENTAL MODELS
How a security expert thinks
about cybersecurity
How the CEO thinks about
cybersecurity

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PROBLEM: OPPOSING MENTAL MODELS
How a security expert thinks
about cybersecurity
How the CEO thinks about
cybersecurity

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SOLUTION: REFRAME METRICS FOR SUCCESS
MITIGATION
MANAGEMENT
Success == No breaches
Success == Finding lots of
vulnerabilities and fixing them

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SOLUTION: REFRAME METRICS FOR SUCCESS
MANAGEMENT
Success == Finding lots of
vulnerabilities and fixing them
Focus is no longer on system, but on process
In addition to detection, core competencies now also
include identification and remediation

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3. Overconfidence in current investments

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PROBLEM: OVERCONFIDENCE IN INVESTMENTS
0
10
20
30
40
50
60
70
80
90
Is your cybersecurity program better than average?
Overconfidence Much?
Yes No
46%
of surveyed CISOs
believed that their
company was investing
enough, but only
7%
believed that their
peers were**Moore, T., Dynes, S., & Chang, F. R. (2016). Identifying how firms manage cybersecurity investment. University of California, Berkeley.

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PROBLEM: OVERCONFIDENCE IN INVESTMENTS
Context: Standards Context: Bad Feedback Systems

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SOLUTION: CLEAR BENCHMARKING
0% 100%
Your company’s score
The average score in your domain
The top 10% in your domain
How’s my cybersecurity program? • Baseline against similar
firms
• Poll other firms about
their own practices
• Poll peers about how
well your own firm is
doing relative to others
• Integrate others’ best
practices

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4. Attention is on the wrong things

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PROBLEM: ATTENTION IS ON WRONG THINGS
Unhelpful Mental Models Availability Bias

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Attention
PROBLEM: ATTENTION IS ON WRONG THINGS

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SOLUTION: BREAK THE SYSTEM
Pentesting and bug
bounty programs
Make key decision makers the
victims of internally initiated
(and safe) attacks

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To summarize…

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FOUR KEY TAKEAWAYS FOR INCREASING
EXECUTIVE INVESTMENT IN CYBER
Vividly connect cyber risks to organizational risks for execs
Use process metrics as opposed to outcome metrics to ”fix”
executives mental models about cyber programs
Survey your peers to help curb overconfidence
Break the system (with help)!

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TO LEARN MORE!
Check out: Deep Thought: A Cybersecurity
Story at ideas42.org/cyber
Check out:
The Behavioral
Economics of Why
Executives Underinvest
in Cybersecurity
at HBR.org

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THANK YOU!
ablau@ideas42.org

31. Q&A