A Systematic Framework to Understand Transnational Governance for Cybersecurity Risks from Digital Trade

Abstract

Governing cybersecurity risks from digital trade is a growing responsibility for governments and corporations. This study develops a systematic framework to delineate and analyze the strategies that governments and corporations take to address cybersecurity risks from digital trade. It maps out the current landscape based on a collection of 75 cases where governments and corporations interact to govern transnational cybersecurity risks. This study reveals that: first, governing cybersecurity risks from digital trade is a global issue whereby most governments implement policies with concerning that the cybersecurity risks embedded within purchasing transnational digital products can influence their domestic political and societal systems. Second, governments dominates the governance interactions by implementing trade policies whereas corporations simply comply. Corporations do, however, have chances to take more active roles in constructing the governance system. Third, supply chain cybersecurity risks have more significant impacts on governance mode between governments and corporations whereas concerns on different national cybersecurity risks do not. Fourth, the interactions between governments and corporations reveal the exisitence of loops that can amplify or reduce cybersecurity risks. This provides policy implications on transnational cybersecurity governance for policy makers and business leaders to consider their potential options and understand the global digital trade environment when cybersecurity and digital trade overlap.