Industrial Security Costs: An Analysis of Reporting Practices

Abstract

This report summarizes a research study of the accounting for and reporting of industrial security costs. Eight organizations participated in the field research which was sponsored by the Resources Working Group of the National Industrial Security Program. The research sites span classified and special security programs for the Department of Defense, the Central Intelligence Agency, and the Department of Energy. The objective was to evaluate whether or not cost information could be gathered by a questionnaire on a periodic basis. The research findings include a wide diversity of security cost practices, a lack of uniformity in cost allocations, and differing organization structures for security operations. Several recommendations are made to support an initial cost gathering methodology.