Decisions Economics Services
Valuation/Security Risk Analysis
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
assessment is targeted to reduce the uncertainty
surrounding: a. economics of security threat
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.
the Business Economic Value (BEV) methodology,
Business Decisions Economics consultants:
- 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
- Reduce the uncertainty about 1. The tangible
economic loss over time, 2. The remediation
costs, 3. The costs and risks of alternative
products and services for risk mitigation.
- Quantify losses that seldom appear in a security
threat analysis because analysts erroneously
think they are “fuzzy” and can’t be
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.
- 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.
- 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.
- 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.
- Use the BEV
framework and tool kit for value
management over the implementation
life cycle of a security risk mitigation
- 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.
All deliverables prepared use your preferred metrics,
such as ROI, IRR, NPV, EVA, etc.
- Deliverables for a corporate security risk analysis:
- Business Decisions Economics findings,
recommendations and consultive review
- A full report, including one section for each BEV process step
- The final Excel spreadsheet model reflecting
events’ economic risk, loss and