A cost-benefit analysis is a technique that compares the costs and benefits of different risk response strategies, such as mitigating, transferring, avoiding, or accepting risks. A cost-benefit analysis can help justify investment in risk response strategies by showing the expected return on investment, the net present value, the break-even point, and the cost-effectiveness of each option.A cost-benefit analysis can also help prioritize the most optimal risk response strategies based on the available resources, the risk appetite, and the stakeholder expectations. References = Risk and Information Systems Control Study Manual, Chapter 3: Risk Response and Mitigation, Section 3.4: Risk Response Selection, p. 156-157.
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