Editor's Note: Let Common Sense Guide Security ROI
I got another letter from a reader the other day telling me that companies will always consider security a "grudge" spend, despite the increasing awareness of the need to protect our computers, networks, and information. Why? Because there's no demonstrable ROI for executives making purchase decisions.
I don't buy it. Granted, I'm not aware of a lot of formulas out there showing that if you purchase X amount of intrusion-detection systems you'll save X amount of money and increase revenue by X percent. How much value can you place on protecting proprietary business intelligence or customer information or intellectual property? How much value can you place on your company's reputation as one that is safe to do business with? Well, it's not a scientifically derived answer, but I'd calculate a heck of a lot of value.
An executive from a security vendor told me recently that part of the problem is that there are so many potential vulnerabilities, threats, patches, etc., that people often don't know how to prioritize. Good point. Here's something to consider.
A University of Maryland study, led by professor Lawrence Gordon, reveals that cybersecurity breaches related to confidential information reduce the expected stock-market value of a firm by an average of 5%. The business-school research team argues that companies need to apply economic concepts to figure out the right amount of investment in information security and the most appropriate way to allocate it. So, you may want to consider investing more in technology that will help you protect your confidential information than in warding off denial-of-service attacks. Applying economic concepts to information security could go a long way toward demonstrating ROI. And so could a little common sense about how much value there is in protecting your assets.
5 Top Federal Initiatives For 2015As InformationWeek Government readers were busy firming up their fiscal year 2015 budgets, we asked them to rate more than 30 IT initiatives in terms of importance and current leadership focus. No surprise, among more than 30 options, security is No. 1. After that, things get less predictable.
Top IT Trends to Watch in Financial ServicesIT pros at banks, investment houses, insurance companies, and other financial services organizations are focused on a range of issues, from peer-to-peer lending to cybersecurity to performance, agility, and compliance. It all matters.
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