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Business Economic Value
About BDE
BDE Profile
More Information


 Business Decisions Economics Services

Business Economic Valuation/Security Risk Analysis

Service Overview

Business Decisions Economics, Inc helps executives evaluate the financial effect of security events on the business, and the economic desirability of various loss prevention/remediation alternatives.  The Business Decisions Economics assessment delivers a powerful enhancement to the usual methods (CBA, EVA, ROI, Scorecards etc) of evaluating corporate losses and companies’ investments in risk mitigation.

The assessment is targeted to reduce the uncertainty surrounding: a. economics of security threat exposure,

 b. the financial justification for prevention of security breaches, c. the cost of remediation and d. the return on investment of various protection alternatives. Each company’s unique data provides the analysis factors.

With the Business Economic Value (BEV) methodology, Business Decisions Economics consultants:

  1. Calculate the value of business loss for security events and improve the accuracy of valuation measurements of the disruption before, during or after the fact, using the unique BEV framework and toolset.
  1. Reduce the uncertainty about 1. The tangible and intangible economic loss over time, 2. The remediation costs, 3. The costs and risks of alternative products and services for risk mitigation.
  1. Quantify losses that seldom appear in a security threat analysis because analysts erroneously think they are “fuzzy” and can’t be quantifiably measured.  As a result, business continuity, prevention product purchases and/or remediation funding decisions are often made on incomplete evidence and compelling information is not adequately considered.
  1. Identify the most sensitive variables in a company’s investment in security threat reduction and quantitatively compare the cost of gathering additional information to the value of reducing the uncertainty of those variables.
  1. Calculate the economic impact of the risks and justify risk mitigation strategies (e.g., real options, multiple alternatives, etc.) to offset the risk and optimize the remediation.  
  1. Understand and model the “Cost of Waiting’’ and “Expected Opportunity Loss” if   risk mitigation is delayed or not implemented or a wrong decision is made.
  1. Use the BEV framework and tool kit for value management over the implementation life cycle of a security risk mitigation investment.
  1. The economic value received from a Business Decisions Economics analysis is documented and typically ranges from 10 to 100 times the fees and effort needed for the analysis.
  1. Deliverables for a corporate security risk analysis:
    1. Business Decisions Economics findings, recommendations and consultive review
    2. A full report, including one section for each BEV process step
    3. The final Excel spreadsheet model reflecting events’ economic risk, loss and remediation costs
All deliverables prepared use your preferred metrics, such as ROI, IRR, NPV, EVA, etc.