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From: purdy at (Curt Purdy)
Subject: [inbox] ROSI

n30 wrote:
> Any good links/pointers to ROSI (Return on security investment)?

Here's what I've got:


A classic argument is that there is similarly no clear return on life
insurance, but that doesn't stop most of us from buying it; still,
attempting to formulate operational-security ROI may be a lost cause.

Assign values to everything from tangible assets (measured in dollars with
depreciation taken into account) to intangible assets (measured in relative
value, for example, software A is three times as valuable as software B).
Different types of hacks were assigned costs according to an existing and
largely accepted taxonomy developed by the Department of Defense. Annual
Loss Expectancy (ALE) was figured. ALE is an attack's damage multiplied by

Determining cost-benefit

(R-E) + T = ALE

R =the cost per year to recover from an intrusion
E = the savings gained by stopping the intrusion
T = the cost of the intrusion detection tool
ALE = the Annual Loss Expectancy
ROSI = Return On Security Investment

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