Essays Tagged "CSO Magazine"
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Security ROI: Fact or Fiction?
Bruce Schneier says ROI is a big deal in business, but it's a misnomer in security. Make sure your financial calculations are based on good data and sound methodologies.
Return on investment, or ROI, is a big deal in business. Any business venture needs to demonstrate a positive return on investment, and a good one at that, in order to be viable.
It’s become a big deal in IT security, too. Many corporate customers are demanding ROI models to demonstrate that a particular security investment pays off. And in response, vendors are providing ROI models that demonstrate how their particular security solution provides the best return on investment.
It’s a good idea in theory, but it’s mostly bunk in practice.
Before I get into the details, there’s one point I have to make. “ROI” as used in a security context is inaccurate. Security is not an investment that provides a return, like a new factory or a financial instrument. It’s an expense that, hopefully, pays for itself in cost savings. Security is about loss prevention, not about earnings. The term just doesn’t make sense in this context…
Sidebar photo of Bruce Schneier by Joe MacInnis.