In a cost-benefit analysis for a two-factor authentication system, which factor is most relevant?

In a cost-benefit analysis for a two-factor authentication system, which factor is most relevant?

• A. The approved budget of the project
• B. The frequency of incidents
• C. The annual loss expectancy (ALE) of incidents
• D. The total cost of ownership (TCO)

Answer: (D)

In a cost-benefit analysis for a two-factor authentication system, the total cost of ownership (TCO) is particularly relevant because it encompasses all the overall costs associated with the implementation and maintenance of the system over its entire lifecycle. This includes not just the initial purchase price but also ongoing expenses such as training, updates, support, hardware costs, and potential scalability throughout its usage. Understanding TCO helps organizations make informed decisions by weighing the investment against expected benefits like enhanced security, reduced fraud, and minimized incident costs. Since TCO provides a comprehensive view of the financial implications of the authentication system, it allows for a better assessment of whether the investment is justified based on the anticipated reduction in risks and potential losses from security incidents. Considering the other options, while the approved budget, frequency of incidents, and annual loss expectancy (ALE) are definitely important factors in determining the need for security measures, they do not provide the complete financial picture. The approved budget simply sets limits on spending without detailing the ongoing costs involved. The frequency of incidents and ALE focus more on risk assessment rather than providing a full understanding of the investment required to mitigate those risks effectively through the two-factor authentication system. Thus, TCO is the most relevant factor for a comprehensive cost-benef

In a cost-benefit analysis for a two-factor authentication system, the total cost of ownership (TCO) is particularly relevant because it encompasses all the overall costs associated with the implementation and maintenance of the system over its entire lifecycle. This includes not just the initial purchase price but also ongoing expenses such as training, updates, support, hardware costs, and potential scalability throughout its usage.

Understanding TCO helps organizations make informed decisions by weighing the investment against expected benefits like enhanced security, reduced fraud, and minimized incident costs. Since TCO provides a comprehensive view of the financial implications of the authentication system, it allows for a better assessment of whether the investment is justified based on the anticipated reduction in risks and potential losses from security incidents.

Considering the other options, while the approved budget, frequency of incidents, and annual loss expectancy (ALE) are definitely important factors in determining the need for security measures, they do not provide the complete financial picture. The approved budget simply sets limits on spending without detailing the ongoing costs involved. The frequency of incidents and ALE focus more on risk assessment rather than providing a full understanding of the investment required to mitigate those risks effectively through the two-factor authentication system. Thus, TCO is the most relevant factor for a comprehensive cost-benef