n Acta Criminologica: Southern African Journal of Criminology - Impact studies as risk-assessment tool for victimisation in a business environment

Volume 22, Issue 2
  • ISSN : 1012-8093



This article is a sequel to the article "Vulnerability as a risk-assessment tool for security applications for victimisation in a business environment", which appeared in the previous volume of Acta Criminologica. Both articles are modified versions of a cost-efficiency model that the author developed as part of a doctoral thesis. This article investigates the financial losses that can be incurred due to threat manifestation. It applies a specific methodology and formulae to calculate the perceived losses. The calculation of the Annual Loss Expectancy (ALE), Total Annual Loss Expectancy (TALE) and the Total Impact Loss are explained. It also synoptically describes how to calculate a return on investment on security costs incurred. Following the explanation of the methodology, an actual example is given of its application. This article demonstrates that the abstract nature of security expenditure has now been brought into the scientific domain.

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