Management Control

The Chief Financial Officer (CFO) made some complaints to the CEO regarding recent capital expenditures for security software. You try to lighten the blow by explaining the value of controlling security.

In a point paper to the CEO, explain the cost benefit analysis method you use to do a quantitative assessment before investing in a security control.

Complete and include the table below in your paper. 

Historical PCS incidents

Cost per Incident

Frequency of Occurrence

SLE

ARO

ALE

Theft of information (hacker) 

$25,500 

1 every 5 years

25,500 

.2

Theft of information (employee) 

$50,000 

1 every 2 years

50,000 

.5

Web defacement 

$500 

1 per month

12.0

$6,000 

Theft of equipment

$5,000 

1 per year

1.0

$5,000 

Virus, worms, Trojan horses

$1,500 

1,500 

52.0

$78,000 

Denial-of-service attacks

$2,500 

2,500 

4.0

$10,000 

You are currently deciding whether to invest in data loss prevention software. You have some reliable statistics that the software will reduce your information theft incidents by half of the current values. The cost of the software is $100K per year. Recalculate the new ARO and ALE for hacker and employee information theft. Based on these new values, explain your decision whether or not to invest in the Data Loss Prevention Software.

Projected PCS incidents with Data Theft Prevention Software

Cost per Incident

Frequency of Occurrence

SLE

ARO

ALE

Theft of information (hacker) 

$25,500 

1 every 5 years

25,500 

Theft of information (employee) 

$50,000 

1 every 2 years

50,000