Page "Risk management" Paragraph 69

In business it is imperative to be able to present the findings of risk assessments in financial, market, or schedule terms.

Robert Courtney Jr. ( IBM, 1970 ) proposed a formula for presenting risks in financial terms.

The Courtney formula was accepted as the official risk analysis method for the US governmental agencies.

The formula proposes calculation of ALE ( annualised loss expectancy ) and compares the expected loss value to the security control implementation costs ( cost-benefit analysis ).