ROSI is a ROI extended with security concerns. This simple evaluation concept applies to every investment, including security. The strength of an investment is normally measured by the certainty and size of return it will provide.
Return on security investment (ROSI) has some nuance to classic ROI. Instead preservation of capital and assets is what should be expected. Before exploring the calculation, it is important to understand the variables of risk assessment.
- Single Loss Expectancy (SLE)
- Annual Rate of Reoccurence (ARO)
- Annual Loss Expectancy (ALE)
- Modified Annual Loss Expectancy (mALE)
- Return of Security Investment (ROSI) Equition
The definition of Return on Security Investment is the following: ROSI = monetary risk mitigation − cost of control. Therefore, a security investment is judged to be profitable if the risk mitigation effect is greater than the expected costs
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