How Does Security Work Within An Organization's Budgeting Process?

1241 WordsJan 25, 20165 Pages
How does security work within an organization 's budgeting process? Include at least two common metrics associated with security and an organization 's budget. Security departments and employees commonly have to work with the organizations budgeting process to be able to plan for the replacement, maintenance, or installation of new security controls and systems. Often a security manager must create an outline or summary of the benefits, total system life costs, and the need for the system to justify the expenditures. They should also create a budget that allows the budgeting team to assess the proposal and compare it to other departments that are trying to allocate capital for their department’s use. This in turn requires the use of several different metrics to identify the best allocation of capital. (McCrie, 2007; Fitzgerals, 2008) One such metric used by security departments and many organizations to ensure capitol is allocated in the areas it will do the most good is known as return on investment (ROI). ROI looks at the total amount of capital expenditures for the budgeted item or project. Management can then assess whether the total cost of the system provides the necessary return on investment to justify the expenditure. For example, if a security department was installing a new employee badging system, management would look at the capital cost of the system to assess if it provides the necessary return on investment by preventing unauthorized access and protecting
Open Document