Question: Using the following formula to perform a cost - benefit analysis ( CBA ) , the company is calculating whether investing in this risk control
Using the following formula to perform a costbenefit analysis CBA the company is calculating whether investing in this risk control technology NGFW which costs $ annually, is costeffective to mitigate the attack. A positive CBA number indicates a costeffective investment, and a negative number indicates a poor investment.
CBA ALEprecontrol ALEpostcontrol ACS
Where,
ALE precontrol the annualized loss expectancy of the risk before the implementation of the risk control
ALE postcontrol the ALE examined after the risk control has been in place for a period of time
Annual Cost ACS the annual cost of the risk control
Based on the formula, what is the CBA in this scenario? Is it costeffective for the company to invest in this security technology? Explain your reasoning.
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