The Economics of Cyber Risk: How Organizations Calculate Security Return on Investment

Chief Information Security Officers face an increasingly complex challenge: justifying cybersecurity investments to business leaders who demand measurable returns. Unlike traditional IT investments with clear productivity metrics, cybersecurity value often appears intangible until a breach occurs. However, sophisticated risk quantification methodologies are emerging that enable organizations to calculate security ROI with business-relevant precision. The Cybersecurity Investment Paradox Global cybersecurity spending exceeded $172 billion in 2023, yet organizations continue experiencing devastating breaches. This apparent paradox raises fundamental questions about security investment effectiveness and measurement approaches. ...

February 15, 2023 · 8 min