Unlocking the Value of Your Security Investment & Maximizing Returns

March 27, 2024 · READ

Budget allocation meetings with leadership can pose an ongoing challenge for security leaders. Department heads advocate for your projects or requests to be prioritized and the ones with the highest profitability potential tend to win. “Cost-centers,” like security teams typically struggle to secure crucial funding for security investments.

Knowing how to communicate the return-on-investment (ROI) of security investments to those in charge of unlocking budget can make the difference for whether or not you get the funds. Demonstrating the tangible benefits and financial return of investing in security programs and software can significantly help your case. Showing — not just telling — how security investment can contribute to your organization’s overall financial health, resilience, and corporate objectives, means having data and reports at your fingertips. That’s where a corporate security software solution can help.

Your efforts should be recognized. By effectively communicating the value and ROI of security investments, you’ll demonstrate how the need for funds leads directly to a safer, more secure future for your organization. Read on to learn how to make the case for security software investment compelling, emphasizing its value beyond cost, but as a critical tool for ensuring your organization’s success and stability.

Calculating the ROI of security investments

Understanding the challenges in obtaining approval for software investments can help you prepare for possible objections. Investments in non-revenue-generating programs, resources, and tools are tough prove as critical to business performance. However, the importance of ensuring the safety and security of your organization is where your storytelling can make a difference.

To assist in making a persuasive case for these necessary security investments, Resolver has developed Return on Investment (ROI) calculator to help you. This tool is designed to help evaluate the sources of value and conduct a preliminary estimation of the potential return.

Our ROI calculator can be a vital tool, helping to give you concrete numbers for investing in security measures. By entering the number of incidents affecting your organization into the calculator, you get a clear, quantified look at the financial impact these incidents have. Determine the potential ROI of investing in security software through the formula: ROI = (Gain from Investment – Cost of Investment) / Cost of Investment. (Don’t worry, we’ve programmed the spreadsheet for you!)

In practical terms, let’s consider a retail company facing frequent inventory thefts. By inputting the annual cost of these thefts into the ROI calculator, the company can assess how much they could save by investing in new security systems. For example, if implementing new security measures costs $20,000 but reduces theft by $40,000 annually, the ROI would be 100%, clearly justifying the investment.

Use this tool to help make informed decisions, backing up security investment proposals with solid financial data. This approach helps you to defend your case for funding with real numbers.

Roi calculator for physical security program roi

Get Resolver’s free return on investment tool here.

Key metrics to consider in a security investment business case

Security teams hear all kinds of wild stories of incidents that seem unlikely to happen. This is especially true when hearing about significant security breaches or physical security attacks on other organizations. We usually think that it would never happen to us.

Tying security investments to these “what-if” scenarios in your strategy is not about fear. It’s about readiness. That’s why security experts continuously encourage a shift in mindset from “if” to “when” regarding potential incidents. By emphasizing the ROI of security investments and the necessity of investment in security software, you prepare not just for the possible, but for the inevitable.

Protecting your organization from financial and reputational harm requires a clear understanding of the potential consequences of security incidents. Emphasizing the role of security investments, including in software solutions, helps to ensure you clearly tie funding to safeguarding against potential threats. Doing so not only secures your assets but also solidifies your reputation and financial stability.

Key metrics to consider include:

  • Single Loss Expectancy: The expected financial loss from a single security incident. This figure varies depending on the evaluation of the assets involved.
  • Annual Rate of Occurrence: Indicates the probability of a security incident occurring within a year.
  • Annual Loss Expectancy (ALE): Critical to understand, ALE represents the total financial loss an organization could suffer from security incidents annually, reflecting the potential cost of maintaining the status quo.

Getting stakeholder buy-in for new software

Amidst budget constraints faced by corporate security teams, gaining stakeholder buy-in for security investments can be the make-or-break. Sure, it requires crafting a compelling business case that underscores the investment’s necessity, aligns with organizational objectives, and highlights its potential ROI.

Proactive groundwork groundwork is key. “When you’ve done the homework, when you’ve done the groundwork, and when you continuously champion for the initiatives that you feel are important to solve,” says Artem Sherman, Product Manager at Resolver, highlights in his webinar on the topic, “From Barrier to Strategic Partner: How to Communicate the Value of Security Investments“, “next time something happens or when budget becomes available, the exec teams are already primed to focus their spending and attention on the solutions that you already have a rough outline for.”

This approach primes executive teams to prioritize proposed solutions, fostering readiness for future security challenges. A key point to this strategy includes conducting thorough IT risk assessments, pinpointing specific security needs, and ensuring alignment with legal and compliance requirements.

Additionally, accentuating potential financial losses, emphasizing regulatory compliance, and evaluating third-party risks fortify the rationale for security investments. By detailing the tangible benefits, such as enhanced efficiency and better protection against emerging threats, security leaders can effectively communicate the value proposition of these investments, reinforcing organizational resilience and stability in the face of evolving security landscapes.  

Building the Case for an Investment in Software

Are you tired of the tedious task of using Excel to produce, report, and present incident reports? Say goodbye to wasted time chasing down information and sifting through emails. With Resolver’s Incident Management software, you can access high-quality, timely data and derive actionable insights effectively.

For security teams building a business case for Incident and Investigations Management software, it’s essential to recognize the opportunities that often go unnoticed due to inefficient reporting methods. Our platform streamlines this process, allowing security teams to focus on more strategic aspects of their roles.

To assist in this transition, Resolver offers a free, downloadable ROI calculator spreadsheet designed to help security teams evaluate the sources of value and estimate the potential return on investment. See how Resolver can transform your security team’s efficiency and effectiveness.

Download our ROI calculator today and unlock the full potential of Resolver’s Incident Management software. 

Maximize your security investment ROI with Resolver’s Incident Management software. Our streamlined approach to tracking and managing incidents enables you to quickly assess and analyze security threats, reducing costs and improving operational efficiency. Request a personalized no-commitment demo to see how Resolver can transform your incident management process and enhance the impact of your security strategy.

This content was originally written on January 15, 2019, and updated for data and content relevancy.

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