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NEW QUESTION: 1
A security manager is looking into the following vendor proposal for a cloud-based SIEM solution. The intention is that the cost of the SIEM solution will be justified by having reduced the number of incidents and therefore saving on the amount spent investigating incidents.
Proposal:
External cloud-based software as a service subscription costing $5,000 per month.
Expected to reduce the number of current incidents per annum by 50%.
The company currently has ten security incidents per annum at an average cost of $10,000 per incident. Which of the following is the ROI for this proposal after three years?
A. $180,000
B. $120,000
C. $150,000
D. -$30,000
Answer: D
Explanation:
Return on investment = Net profit / Investment
where:Net profit = gross profit expenses.
or
Return on investment = (gain from investment - cost of investment) / cost of investment Subscriptions = 5,000 x 12 = 60,000 per annum
10 incidents @ 10,000 = 100.000 per annumreduce by 50% = 50,000 per annum Thus the rate of Return is -10,000 per annum and that makes for -$30,000 after three years.
References:
http://www.financeformulas.net/Return_on_Investment.html
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