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Return on Security Investment - use this ratio!

Author by Tracie Parent


With more recent publicity regarding hacking of personal data it is surprising how many businesses need to secure their systems.  In our world, regardless of what vertical business we are in – manufacturing, retail, financial services, healthcare, education, or government – securing data and infrastructure should be of the utmost importance to a CFO today.  It can take up to 200 days to even realize there was a breach!

Investments earn / save money or mitigate risk overtime.  Unfortunately, when we in Finance hear “investment” we associate that immediately with Return on Investment (ROI).  Traditionally a profitability ratio, ROI is used to describe an expense that offers some other benefit geared toward income to the organization.

When looking at Cloud Computing and Security one may begin to use a term called Return on Security Investment (ROSI) which is a term used to justify the expense from which the organization can benefit from loss prevention.  It is the amount of risk reduced less an amount spent and divided by the amount spent on controls. 

Cost savings and loss prevention are inherent when cloud and security are bundled.  Manual processes and disconnected tools lead to long response cycles.  There will be improved business processes, enhancements of growth, operational advantages, efficiencies, and compliance.  Think long haul and take the necessary steps toward improving ROSI.

A CFO and CISO can sit down together and collaborate a shared vision to cloud computing with security at the forefront that will serve the whole organization. 

As a CFO, you will be targeted by hackers and scammers.  Be passionate not only about Finance but also about Technology! 
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