Security Controls can be incredibly cost effective or astronomically expensive. And when you’re faced with a facility or a school campus, or a system that has to be secured, but you also have a budget to keep in mind – what do you do?
The simple answer is ROI – Return on Investment. This simple calculation compares the Cost of the Proposed Control to the Protection is Provides and that creates the magic ROI Number.
Here’s an example: A hospital near the New Jersey shore wants to create a new emergency ops center. They have the space,
but it would cost about $250,000 to build it out. Here’s what we look at – how often would they use an emergency ops center?
Threat data shows that they would need to use it about 3-6
times a year, including severe storms, thunderstorms and hurricanes.
(After Hurricane Sandy, the hospital was closed for two days because they were not able to resume service right away. As a result, the hospital lost about $2,000,000 per day because it could not bill for any services, none could be provided.)
So we take that lost $2,000,000 per day and say that if we could keep the facility open because we had a better operational center, we could easily save 2 days of revenue which is $4,000,000 for the 2 days, and if it cost us only $ 250,000, and saves us $ 4,000,000, that’s a Return on Investment of SIXTEEN to ONE, 16:1.
Say it saved us 3 days of revenue a year – that’s a ROI of TWENTY-FOUR to ONE, 24:1!
You can get more info by writing to me directly at caroline@riskandsecurityllc.com and requesting a webinar invitation,
or a copy of the video.