Calculations

In the Risks workspace of an Asset Strategy, the ROI column appears in the Mitigating Actions section, as shown in the following image. The purpose of this column is to help the user identify the relative worth of each Action in terms of its ability to, in a cost-effective manner, mitigate the risks to which they are linked. A red outline has been added to this image to highlight the ROI column.

For each Action displayed in the grid, ROI is calculated as:

ROI = ([Unmitigated Financial Risk - Mitigated Financial Risk] – Annual Action Cost) / Annual Action Cost

If an Action mitigates only one Risk, the unmitigated financial risk and mitigated financial risk apply only to that Risk. If, however, an Action mitigates multiple Risks, the ROI calculation uses the sum of the differences between the unmitigated and mitigated financial risks for each Risk that the Action mitigates.