Why ROSI Isn't So ROSI After-all


Download

Get Instant Access
To unlock the full content, please fill out our simple form and receive instant access.

(By Info-Tech Analyst James Quin- Printed with permission from Processor magazine www.processor.com).

Doing The Math

For those in need of a refresher, determining ROSI first requires that the enterprise calculates its ALE, or Annual Loss Expectancy, (the total annual dollar cost for the specific risk in question). Calculating the ALE, however, requires that we calculate the ARO, or Annual Rate of Occurrence (how many times the risk is likely to occur per year), and SLE, or Single Loss Expectancy (the dollar cost of a single occurrence of the risk in question). Laid out in a consolidated formula, we get:

ROSI = Cost of Solution / (ARO x SLE)

Hide Details

Search Code: 7898
Published: January 15, 2008
Last Revised: January 15, 2008

Related Content

GET HELP Contact Us
×
VL Methodology