How is TCO useful for managers in cyber risk management?

The Total Cost of Ownership (TCO) is a critical tool for managers in cyber risk management because it enables a comprehensive comparison of security options over time. By calculating TCO, managers can evaluate the complete costs associated with the procurement, implementation, maintenance, and potential risks related to various security solutions. This perspective allows managers to assess which option provides the best value for money, taking into account both initial expenses and long-term implications.

For example, one security measure may appear cheaper upfront but could incur higher costs over time due to maintenance or inefficiencies. By considering TCO, managers can make informed decisions that not only align with immediate budget constraints but also support long-term strategic goals in cybersecurity. This holistic view encourages informed decision-making rather than reactive choices based solely on initial costs.