Knowing where security fits into a company's budget is critical to the manager successfully accessing financial resources. Which of the following statements best describes a security department's impact on the bottom line?
A.
The security department's costs must be minimized to reduce the expense side of the corporate ledger
B.
The security department is an investment with a predictable rate of return.
C.
The security department's expense requests must be supported by a cost-benefit analysis.
D.
The security department helps the profit margin by reducing or preventing losses of company assets.
A security department's primary contribution to the bottom line is through loss prevention and asset protection. By minimizing risks such as theft, fraud, and vandalism, the department helps protect company profits and supports business continuity. Security is an investment that indirectly increases profitability by reducing losses.
ASIS Certified Protection Professional (CPP®) References:
Cost-Benefit Analysis: CPP materials describe the role of security in enhancing the bottom line through loss reduction and risk mitigation.
Business Risk Management: Security’s contribution to profitability is a key topic in CPP discussions on strategic alignment of security and business goals
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