The decision-making process in which the costs and benefits of each countermeasure alternative are compared and the most appropriate alternative is selected.
Source:API STANDARD 780, Security Risk Assessment Methodology for the Petroleum and Petrochemical Industries, First Edition, May 2013. Global Standards
Cost-benefit Analysis (CBA)
Definition: Analytic technique used to compare alternatives according to the relative costs incurred and the relative benefits gained
Sample Usage: Cost-benefit analysis allowed risk practitioners to make recommendations between two different screening systems.
Extended Definition: typically measured in monetary terms.
Annotation: The analysis can incorporate discounting calculations to take into account the time value of money.
Source: DHS Risk Lexicon, U.S. Department of Homeland Security, 2010 Edition. September 2010 Regulatory Guidance