Calculating ROI for Incident Management Solutions

This guide outlines the process for calculating the return on investment (ROI) for incident and investigation software solutions. It begins by addressing the common challenge of justifying budget expenditures for new software. The document introduces a simple ROI tool designed to help quantify potential returns, emphasizing the importance of clearly communicating the value to leadership. The guide categorizes various types of losses associated with incidents, such as lost or damaged assets, lawsuits, fines, lost productivity, and lost revenue. It also discusses the importance of gathering accurate data on incidents and average losses to estimate annual losses. Furthermore, the document highlights the significance of presenting data effectively to support investment decisions. It encourages users to commit to modest improvements in incident reduction to justify the investment. Lastly, the guide mentions intangible benefits of implementing software solutions, such as improved executive protection and better decision-making capabilities.