VIEWS: 3 PAGES: 2 CATEGORY: Social Sciences POSTED ON: 7/14/2010
The greater the risk exposure in any given area, generally the more funds will be allocated to mitigate those risks, or the more security will cost financially. However, company executives may choose to accept certain risks and not to allocate funds to mitigate them.
Solutions Snapshot Richard Leﬂer, former CSO, Bob Hayes, Managing Michael Philips, Director Denise Reubens, Sr. Director American Express, Dean of Director, Security Executive of Corporate Security, Bose Global Security, Microsoft Faculty, Security Executive Council Corporation Corporation Council How do you define the cost of security? The traditional measurement During any persuasive execu- How to define the cost of The cost of security is a direct of security costs includes operat- tive presentation on security pro- security will differ for each com- correlation to the ability to suc- ing costs, capital investments that gramming or initiatives, you can pany, depending on factors such cessfully identify, analyze and measure what a company spends count on being asked how your as the company culture and exec- mitigate potential risks to your to protect its employees, brand idea or proposal compares to oth- utive management’s perception company. The business should reputation and often, customer ers in the industry and how the of how increased or decreased prioritize risks by impact and relationships. cost compares to your peers’. security will mitigate risk. likelihood and the opportunities Businesspeople are trained to For decades, this has been prob- The greater the risk exposure to reduce, control and/or monitor analyze the return that a given lematic because of a total lack of in any given area, generally the these risks. investment will yield, and often, common industry benchmarks and more funds will be allocated to Robust planning with ongo- if that investment does not meet information sharing. There is no mitigate those risks, or the more ing risk assessment, gap analysis, the company “hurdle rate,” the area in which this lack of shared security will cost financially. intelligence, exercising, tabletop investment is not made. definition is more evident than in However, company executives training and program enhance- Measuring security returns determining the cost of security. may choose to accept certain ments will increase your capabili- is difficult for businesspeople To complicate matters even risks and not to allocate funds to ties and effectiveness to respond, because security programs pre- further, there has never been more mitigate them. stabilize and recover during and vent problems and financial loss- intense interest on management’s Periodic risk assessments after the tim
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