Real Option Applications to Information Security
Communications & Strategies, No. 70, p. 15, 2nd Quarter 2008
11 Pages Posted: 6 Mar 2009
Date Written: March 5, 2009
Real options present advantages over the standard discounting methods. In this paper we analyze them briefly and examine their potential applications on information security. The applications of real options on valuation of information assets, information security investment and capital budgeting provide considerable benefits. Finally portfolios of real options and other financial products can reduce information security risk.
Keywords: Real options, information security, valuation, information security investment, capital budgeting, portfolio theory, information security risk
JEL Classification: L86, D46, D89, E22, G11, G12, G31
Suggested Citation: Suggested Citation