You are preparing a business case for a data loss prevention solution. Which of the following is the least feasible method for capital budgeting? (Wentz QOTD)
A. Payback period
B. Internal rate of return
C. Net present value
D. Annualized loss expectancy
Kindly be reminded that the suggested answer is for your reference only. It doesn’t matter whether you have the right or wrong answer. What really matters is your reasoning process and justifications.
My suggested answer is D. Annualized loss expectancy.
Wentz’s book, The Effective CISSP: Security and Risk Management, helps CISSP and CISM aspirants build a solid conceptual security model. It is a tutorial for information security and a supplement to the official study guides for the CISSP and CISM exams and an informative reference for security professionals.
Payback period, Internal rate of return (IRR), and Net present value (NPV) are common capital budgeting methods.
Annualized loss expectancy (ALE) is a quantitative approach for risk analysis.
Reference
您正在為數據丟失防護(DLP)解決方案準備業務案例(business case)。 以下哪項是最不可行的資本預算(capital budgeting)方法？ (Wentz QOTD)
A. 回收期 (Payback period)
B. 內部收益率 (Internal rate of return)
C. 淨現值 (Net present value)
D. 年化預期損失 (Annualized loss expectancy)