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Governance, Risk & Compliance

ROI

Return on Investment

A measure of the financial benefit of an investment relative to its cost.

Return on Investment measures the financial gain from an expenditure relative to its cost and is used to justify security spending to leadership. In risk decisions, controls are weighed by comparing their cost against the reduction in expected loss, often expressed through annualized loss expectancy. A control that costs more than the risk it mitigates offers poor ROI. Framing security in these business terms helps prioritize investments and aligns with risk management concepts such as cost-benefit analysis.

Related terms

Looking ROI up is step one. Getting tested on it is step two.

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