T is the cost of the intrusion detection tool.To determine our return on security investment (ROSI) we simply subtract what we expect to lose in a year (ALE) from the annual cost of intrusion.Doing this equation yields the Annual Loss Expectancy. SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe E is the dollar savings gained by stopping any number of intrusions through the introduction of an intrusion detection tool. R is the cost per year to recover from any number of intrusions.(R-E) + T = ALE R – (ALE) = ROSIThe Earlier You Invest in Security, the Greater the ReturnResearchers found that you get a 21% return on your security investment at the software design phase, a 15% return at the implementation stage and a 12% return at the testing stage.RETURN on security investmentSOFTWARE ENGINEERING PROCESSsource: MIT/Stanford/@stake For More Information on the Economics Behind Securitywww.digitaleconomist.comA good primer on economic terms and techniques, including concepts such asindifference curves.cisac.stanford.edu/docs/soohoo.pdf Stanford economist Kevin Soo Hoo’s thesis on quantifying infosecurity. It’s a little math-heavy, but it contains excellent data on the history of the problem and a proposed model for fixing it.www.cert.org The CERT website has an entire page devoted to emerging research on survivability and the quantification of it. It includes the research highlighted here. Related content feature Mastercard preps for the post-quantum cybersecurity threat A cryptographically relevant quantum computer will put everyday online transactions at risk. Mastercard is preparing for such an eventuality — today. By Poornima Apte Sep 22, 2023 6 mins CIO 100 CIO 100 CIO 100 feature 9 famous analytics and AI disasters Insights from data and machine learning algorithms can be invaluable, but mistakes can cost you reputation, revenue, or even lives. These high-profile analytics and AI blunders illustrate what can go wrong. By Thor Olavsrud Sep 22, 2023 13 mins Technology Industry Generative AI Machine Learning feature Top 15 data management platforms available today Data management platforms (DMPs) help organizations collect and manage data from a wide array of sources — and are becoming increasingly important for customer-centric sales and marketing campaigns. By Peter Wayner Sep 22, 2023 10 mins Marketing Software Data Management opinion Four questions for a casino InfoSec director By Beth Kormanik Sep 21, 2023 3 mins Media and Entertainment Industry Events Security Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe