Complete Guide to Return on Security Investment (ROSI)
What is ROSI?
Return on Security Investment (ROSI) is a metric used to quantify the financial effectiveness of an organization's investment in security mechanisms. It compares the cost of the security investment to the cost savings potentially earned from reduced security incidents.
Importance of ROSI:
ROSI allows organizations to understand and justify the cost of their security investments. It provides an understanding of real value derived from security controls and enables smart and cost-effective decisions regarding security investments.
How ROSI Works?
ROSI is calculated by dividing the monetary value of risk mitigation by the total cost of the security solution, then subtracting one to express the result as a percentage. A positive result indicates a beneficial investment.
Calculating ROSI:
ROSI = (Risk Mitigation Value / Security Solution Cost) - 1
Exam Tips: Answering Questions on Return on Security Investment (ROSI)
- Understand the concept: Komprehend ROSI along with risk mitigation and security solution cost.
- Know how to calculate ROSI: Remember the formula and know how to perform the calculation.
- Benefits of ROSI: Be able to explain why an organization would calculate ROSI and how it benefits their security planning.
- Real-life application: Practise applying the formula and concepts to different security investment scenarios commonly addressed in exam questions.
Go Premium
CISSP Preparation Package (2024)
- 5693 Superior-grade CISSP practice questions.
- Accelerated Mastery: Deep dive into critical topics to fast-track your mastery.
- Unlock Effortless CISSP preparation: 5 full exams.
- 100% Satisfaction Guaranteed: Full refund with no questions if unsatisfied.
- Bonus: If you upgrade now you get upgraded access to all courses
- Risk-Free Decision: Start with a 7-day free trial - get premium features at no cost!
Return on Security Investment (ROSI) practice test
Return on Security Investment (ROSI) is a financial metric that helps organizations evaluate the financial benefits of their security investments. ROSI is calculated by dividing the total cost savings and value generated by a security initiative by the total cost of that initiative. This measure helps organizations understand the cost-effectiveness of their security spending and prioritize investments in the most efficient and effective security controls. ROSI can be influenced by several factors, such as risk reduction, regulatory compliance, or improvements in operational efficiency.
Time: 5 minutes Questions: 5
Practice more Return on Security Investment (ROSI) questions
Go Premium
CISSP Preparation Package (2024)
- 5693 Superior-grade CISSP practice questions.
- Accelerated Mastery: Deep dive into critical topics to fast-track your mastery.
- Unlock Effortless CISSP preparation: 5 full exams.
- 100% Satisfaction Guaranteed: Full refund with no questions if unsatisfied.
- Bonus: If you upgrade now you get upgraded access to all courses
- Risk-Free Decision: Start with a 7-day free trial - get premium features at no cost!