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Discusses the need for information security managers to examine the economics of security to protect their companies. Indirect costs and negative impact of lack of security on companies' reputations; Use of return on investment and net present value to economically justify information-security investments; Advantages of using net present value; Problem of externalities; Information sharing issues. INSET: CYBERCRIMES' TRUE PRICE: Crime may not pay, but someone has to....

Reports that the Leading Hotels of the World Ltd. wants to measure the return on investment on its outlay for a network of reservation systems. Purchase of InfoNet Service Corp.'s Application Defined Networking service; Use of hosted software called the Network Analysis Program; Benchmarks company executives consider.