ROI and quantitative analysis is useful, but prioritizing security projects and focusing on objectives is smart business. Quantitative methods may provide useful input, but they’re no substitute for careful reasoning about which security expenditures will help make your enterprise more successful overall. The company has a baseline of security spending that is nondiscretionary and necessary to satisfy the its regulatory and internal audit requirements. ROI and other quantitative analysis may help provide a common framework with other technology investments, but you should prioritize and justify security spending by having a solid discussion of your application objectives and their exposures. Because so much of today’s security budget is dedicated to mandatory items, only a fraction is left for discretionary projects. Risk-management philosophy pervades today’s companies, and it’s apparent on both the revenue- and cost-generating sides of the house.