ŠAVŠ/TAČR Digital Czechia in a Digital Europe

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the already existing structures – the mere creation of a university cyber security program on campus without a deeper connection seems to be a significantly insufficient solution.

COSTS AND ECONOMIC MANAGEMENT

Threats to cyber security have many adverse effects, both directly and indirectly. Typically, direct costs can be the loss of strategically important data, information related to national security, personal data of government employees or the theft of industrial secrets of private companies, etc. However, indirect costs are associated with this, which will begin to play a more significant role in the medium to long term. With the increasing transition to the digital economy and the exponential growth of the digitalization of public administration, services and manufacturing, the ability of the state and businesses to ensure cyber security will be a key variable in future investment. At the same time, economic growth and prosperity are closely linked, among other things, to the level of investment, which is highly dependent on the predictability, stability and security of the environment. Today’s investors, assessing the riskiness of their potential investments, must take all these factors into account. The ability to ensure cyber security and protection will become as important a factor as, for example, political stability or the liquidity of trading partners. From the results of the Global Summit – The 6th Annual Internet of Things conference held in Washington D.C. in October 2018, it is clear that the ability to secure, at home and abroad, confidence in one’s own cyber capabilities can make a major contribution to economic growth and prosperity. 26 Cyber security is thus in the economic interest of the Czech Republic. In the event that the Czech Republic is not able to ensure the same quality protection of data and information as in neighboring countries, it is highly probable that some investors will be discouraged from operations in the Czech Republic. Thus, several targeted cyberattacks could have, in addition to direct costs, also indirect costs, such as reputational costs, which could have an adverse effect on the Czech economy in the medium term. There is more data suggesting an ever-increasing link between cyber security and the economy. According to current estimates, the global cost of cybercrime is around €400 billion a year. 27 On top of this, between 2013 and 2017, the economic impact of cybercrime increased fivefold, and by the end of 2019 this

26 The 6th Annual Internet of Things Global Summit, The Washington Plaza Hotel, Washington D.C, 04.- 05/10/2018. 27 Carrapico Helena Farrand, Cyber Security Series: Comparing Best Practice Across Europe, Chatham House.