What is the primary reason for performing a return on investment analysis?

The primary purpose of a return on investment (ROI) analysis in cybersecurity is to determine if the cost of implementing a solution is justified by the risk reduction or benefits it provides.

Purpose of ROI Analysis:

Evaluates the financial impact of a proposed solution in mitigating identified risks.

Helps determine whether the cost is outweighed by the value gained (risk reduction or operational efficiency).

Key Considerations:

Includes both tangible benefits (e.g., cost savings) and intangible benefits (e.g., reputation protection).

Guides decision-making between implementing or forgoing a solution.

Other Options:

Vendor Selection: ROI is not limited to vendor comparison.

Present Value Calculation: ROI is broader, encompassing benefits over costs.

Annual Loss Expectancy (ALE): A related metric but not the primary purpose of ROI.

Risk-Based Decision Making: EC-Council emphasizes aligning investments with risk mitigation goals.

Economic Evaluation in Security Projects: ROI analysis supports strategic resource allocation.

EC-Council CISO References: