# Security Incentive Design Framework

- **PURPOSE:** Helps organizations develop incentive structures that effectively encourage collaborative risk management behaviors while avoiding unintended consequences.
- **WHEN TO USE:**When revising performance management systems, addressing security behavior challenges, or implementing shared risk ownership models.

**SECURITY INCENTIVE DESIGN FRAMEWORK**

## PHASE 1: BEHAVIORAL ANALYSIS

### Target Behaviors to Encourage:

1. [Specific behavior 1]
2. [Specific behavior 2]
3. [Specific behavior 3]

### Current Behaviors to Discourage:

- [ ] [Specific behavior 1]
- [ ] [Specific behavior 2]
- [ ] [Specific behavior 3]

### Behavioral Drivers Analysis:

| Behavior | Current Drivers | Barriers to Change | Primary Motivators for Target Audience |
| --- | --- | --- | --- |
| [Behavior 1] |  |  |  |
| [Behavior 2] |  |  |  |
| [Behavior 3] |  |  |  |

Table 58: Behavioral Drivers Analysis

## PHASE 2: INCENTIVE MECHANISM SELECTION

### Incentive Types Evaluation:

| Incentive Type | Appropriateness (1-5) | Key Considerations | Implementation Complexity |
| --- | --- | --- | --- |
| Financial Compensation |  |  |  |
| Recognition Programs |  |  |  |
| Career Advancement |  |  |  |
| Professional Development |  |  |  |
| Autonomy/Authority |  |  |  |
| Team-Based Rewards |  |  |  |
| Other: |  |  |  |

Table 59: Incentive Types Evaluation

### Selected Incentive Mechanisms:

- [Primary incentive approach]
- [Secondary incentive approach]
- [Tertiary incentive approach]

Rationale for Selection: [Brief explanation of why these mechanisms were selected]

## PHASE 3: METRIC DESIGN

### Individual-Level Metrics:

| Metric | Definition | Measurement Method | Target | Weight |
| --- | --- | --- | --- | --- |
| [Metric 1] |  |  |  |  |
| [Metric 2] |  |  |  |  |
| [Metric 3] |  |  |  |  |

Table 60: Individual-Level Metrics

### Team/Department-Level Metrics:

| Metric | Definition | Measurement Method | Target | Weight |
| --- | --- | --- | --- | --- |
| [Metric 1] |  |  |  |  |
| [Metric 2] |  |  |  |  |
| [Metric 3] |  |  |  |  |

Table 61: Team/Department-Level Metrics

### Organization-Level Metrics:

| Metric | Definition | Measurement Method | Target | Weight |
| --- | --- | --- | --- | --- |
| [Metric 1] |  |  |  |  |
| [Metric 2] |  |  |  |  |
| [Metric 3] |  |  |  |  |

Table 62: Organization-Level Metrics

## PHASE 4: UNINTENDED CONSEQUENCES ANALYSIS

| Proposed Incentive | Potential Unintended Consequence | Likelihood (1-5) | Impact (1-5) | Mitigation Strategy |
| --- | --- | --- | --- | --- |
| [Incentive 1] |  |  |  |  |
| [Incentive 2] |  |  |  |  |
| [Incentive 3] |  |  |  |  |

Table 63: Unintended Consequences Analysis

## PHASE 5: IMPLEMENTATION PLAN

### Communication Strategy:

- [Key message points]
- [Communication channels]
- [Timing considerations]

### Pilot Approach:

- [Scope of initial implementation]
- [Duration]
- [Success criteria]

### Stakeholder Engagement:

- [Key stakeholders]
- [Engagement approach]
- [Required approvals]

### Resource Requirements:

- [Budget implications]
- [System changes]
- [Administrative support]

### Timeline:

| Milestone | Activities | Owner | Timeline |
| --- | --- | --- | --- |
| [Milestone 1] |  |  |  |
| [Milestone 2] |  |  |  |
| [Milestone 3] |  |  |  |
| [Milestone 4] |  |  |  |

Table 64: Timeline

## PHASE 6: EVALUATION AND REFINEMENT

### Effectiveness Measures:

[How will you determine if the incentives are working?]

### Feedback Mechanisms:

- [How will you collect feedback from affected parties?]

### Refinement Process:

- [Process for making adjustments based on results]
- [Decision criteria for major changes]

### Review Schedule:

- [Timing for formal reviews]
- [Key stakeholders in review process]

## IMPLEMENTATION TIPS:

- Start with a small pilot to test and refine incentive approaches before broader implementation
- Balance leading indicators (behaviors) with lagging indicators (outcomes) in your metric design
- Review the incentive structure quarterly during the first year, then annually thereafter to ensure it continues to drive desired behaviors

***

(c)[Kayne McGladrey](https://kaynemcgladrey.com/) - [Get the full book "Cyber Risk is a Myth"](https://www.routledge.com/Cyber-Risk-is-a-Myth-A-Business-Approach-to-Integrated-Risk-Management/McGladrey/p/book/9781041249054)