Cybersecurity is an investment, not a cost center. Yet, CISOs struggle to prove this to the CFO. Human Risk Management (HRM) offers the clearest path to demonstrable ROI in the security stack.
The Two-Pronged ROI Model
ROI comes from two sources: Risk Avoidance and Operational Efficiency.
1. Risk Avoidance
The cost of a single breach averages $4.45 million (IBM).
Formula:
(Avg Breach Cost) x (% Probability Reduction) = ValueIf HRM reduces phishing susceptibility by 90%, you are massively reducing the dominance of the primary attack vector.
2. Operational Efficiency
The cost of manual administration.
Formula:
(Admin Hourly Rate) x (Hours Saved/Year) = SavingsSwitching to Autonomous HRM saves ~500 hours/year.
The Insurance Factor
Carriers are now mandated to assess "Controls Effectiveness." Organizations with a data-driven HRM program often qualify for:
- Lower premiums (up to 15% reduction).
- Higher coverage limits.
- Reduced deductibles.
Key Takeaway
"When presenting to the board, lead with the Efficiency savings (hard dollars today), then close with the Risk savings (strategic protection)."
