What is Return on Security Investment? How to Measure the Return on Investment (ROI)?

What is Return on Security Investment?

It is crucial to invest in cyber security due to state of cybersecurity today. Before making any decisions concerning the security posture of your business, you must consider the Return on Security Investment. In this article, we took a closer look at what ROSI is and how it is calculated. *

What is Return on Security Investment?

It is an evident fact that information security is one of the main concerns of a company. As a result, various companies from very different sectors invest great sums of resources in security information. Software, systems, physical and virtual measures, new technologies, improved devices, intricate protocols…

There are endless options if you want to improve the security posture of your business. But when you invest considerate amounts of money and other resources on security measures, it is only natural to be curious about how well your investment is paying. Return on security investment (ROSI) aims to satisfy this curiosity. With the ROSI calculations, it is possible to get a firm grasp of the amount of risk diminished with the amount spent on security measures.

Why is the ROSI Important?

In a world abundant with hackers, data thieves, viruses, malware and cyber-terrorists, it is essential to know if you are ‘safe’ enough. In order to ensure the safety of your networks and systems, you need to take necessary precautions, choose and implement related solutions. As you might have noticed, information security operations require decision making a lot often. From the very first step (such as choosing from numerous alternative software solutions) to further steps along the line (such as deciding how to act upon a security event), you need to make decisions.

More specifically, you need to make informed decisions in order to keep your network and systems safe. That is why considering ROSI is important while making decisions in regards to the security posture of your business. ROSI allows you to know the answers of following questions: How much is the current inadequacy of security costing the business? How does the security affect overall efficiency of business operations? What kind of an impact would a possible security breach have on the business? How can the inadequacy of security be solved? What is the most cost-effective option? How will the solution affect overall efficiency of the business operations? Having the answers to such questions allows you to make better, well informed decisions.

As a result, you can improve the security status of your business to a greater degree. Moreover, being able to financially justify your actions is a must in a corporate environment no matter how important or impactful those actions are. In addition, nobody wants to invest on solutions that will not be effective. Considering the ROSI allows you to foresee how efficient, how useful the solutions you want to implement are going to be. After all, there is no point in implementing a solution that will not result in a decrease in risks.

Thanks to Logsign, security intelligence solutions, your return on security investment will increase. How is ROSI Calculated? The calculation of ROSI is pretty straightforward. You can find the formula below. The desired outcome must be greater than 1, otherwise you are making a wrong move in regard to your security operations. ROSI = (Risk Exposure . % Risk Mitigated) – Solution Cost Solution Cost