To determine a return on investment (ROI), the most accurate metric is profits as a percentage of capital investment. This calculation measures how effectively the invested capital generates profits, providing a clear indication of the financial return from an investment in security or other projects.
ASIS Certified Protection Professional (CPP®) References:
Financial Management in Security: The CPP manual emphasizes ROI calculations as a critical factor in justifying security expenditures and investments.
Security Budgeting and Metrics: Chapter 8 provides detailed guidance on assessing ROI in the context of risk mitigation and organizational value.
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