7.1 CYBER LAWS
Much of the cost of cyber risk is driven by regulatory requirements that govern reporting requirements, penalty payments, and compensation to victims. Countries with the strictest regulations make data breaches most expensive, with costs in heavily regulated countries being more than twice those in countries with limited data regulation. The regulatory landscape is changing rapidly. Figure 7.1 shows that nearly all the major advanced economies with significant cyber risk are now under heavy or robust regulatory regimes, and emerging markets are increasingly regulated.
7.1.1 Jurisprudence and Commerce
Regulation of commerce, like the emerging digital economy, has a long history. Drafted under the reign of the French Sun King, Louis XIV, the Great Marine Ordinance of August 1681 was the most complete system of maritime jurisprudence that had ever appeared. A contemporary commentator wrote in awe:
‘It was so comprehensive in its plan, so excellent in the arrangement of its parts, so just in its decisions, so wise in its general and particular policy, so accurate and clear in its details, that it deserves to be considered as a model of a perfect code of maritime jurisprudence’.
With the expansion of international ...