Consider the following scenario: A company has a database server whose value, information and equipment, is approximately $200 000. When the manager has checked up the literature regarding this type of server he found that there is the probability of a general failure every 10 years. This failure could lead to the complete deletion of the information that this system stores. Because of that information, the security manager has decided to establish an information backup plan that will cost USD 10 000 per year.
According to that information, I have made the following calculations:
ALE=200 000*(1/10)=20 000
The question that I have is that if the cost of applying the backup procedure would be better than no applying it. I consider that the total cost that I would spend in the ten years, period of time in which it could pass the incident mentioned above, would be:
10 000*10=$100 000
According to this logic, could I establish that it is better not to make the expenditure for the backup of the information? Any comments?