Which of the following would be MOST relevant in a cost-benefit analysis of a two-factor authentication system?

Which of the following would be MOST relevant in a cost-benefit analysis of a two-factor authentication system?

• A. Annual loss expectancy of incident.
• B. Frequency of incident.
• C. Total cost of ownership.
• D. Approved budget for the project.

Answer: (C)

In a cost-benefit analysis of a two-factor authentication system, the total cost of ownership is particularly relevant because it encompasses all expenses associated with the implementation and maintenance of the system. This includes upfront costs, such as purchasing hardware and software, as well as ongoing expenses like support, training, and any infrastructure modifications needed. By evaluating the total cost of ownership, an organization can better understand the financial implications of adopting the two-factor authentication system and ensure it aligns with budgetary constraints and overall financial strategy. While the annual loss expectancy of incidents, frequency of incidents, and approved budget for the project are important factors to consider in a broader risk management context, they do not provide a complete picture of the financial impact of implementing two-factor authentication. The total cost of ownership allows stakeholders to weigh the long-term costs against potential security benefits, ultimately guiding informed decision-making about whether the investment is justified based on both financial and security needs. This comprehensive understanding is crucial for making strategic cybersecurity investments.

In a cost-benefit analysis of a two-factor authentication system, the total cost of ownership is particularly relevant because it encompasses all expenses associated with the implementation and maintenance of the system. This includes upfront costs, such as purchasing hardware and software, as well as ongoing expenses like support, training, and any infrastructure modifications needed. By evaluating the total cost of ownership, an organization can better understand the financial implications of adopting the two-factor authentication system and ensure it aligns with budgetary constraints and overall financial strategy.

While the annual loss expectancy of incidents, frequency of incidents, and approved budget for the project are important factors to consider in a broader risk management context, they do not provide a complete picture of the financial impact of implementing two-factor authentication. The total cost of ownership allows stakeholders to weigh the long-term costs against potential security benefits, ultimately guiding informed decision-making about whether the investment is justified based on both financial and security needs. This comprehensive understanding is crucial for making strategic cybersecurity investments.