Your organization has a gross sales of $40 million, and you have 100 employees. What is the maximum amount of loss in dollars you can afford so your cybersecurity return on investment (ROI) is one (1) for a year?
To determine the maximum amount of loss in dollars you can afford while maintaining a cybersecurity ROI of one (1), we need to calculate the cybersecurity investment you can make based on the provided information.
Cybersecurity ROI can be calculated using the formula:
ROI = (Gross Sales - Investment Cost) / Investment Cost
Given:
Gross Sales = $40 million
ROI = 1
Rearranging the formula, we get:
Investment Cost = Gross Sales / (ROI + 1)
Investment Cost = $40 million / (1 + 1)
Investment Cost = $40 million / 2
Investment Cost = $20 million
Now, if you invest $20 million in cybersecurity, the maximum amount of loss you can afford while maintaining an ROI of one (1) for a year would be equal to your investment cost.
Therefore, the maximum amount of loss in dollars you can afford is $20 million.