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A cost-benefit analysis of security at the Naval Postgraduate School

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Author
Lakamp, David J.
McCarthy, Gill H.
Date
2003-12
Advisor
Henderson, David R.
Summers, Don E.
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Abstract
This project was a cost-benefit analysis of security at Naval Postgraduate School. The objective was to determine if the reduction in the probability of a risk of attack would be worth the costs. The product is a comprehensive cost-benefit analysis of increased security measures at NPS following the September 11th terrorist attacks. The present value approach was used as a guide to compare the cost of preventative measures against a physical attack and the value of benefits preserved by a deterred attack. Often, cost is simply measured in outlays, while other major cost items such as the opportunity cost of time and intangible costs are excluded. This analysis assigned a monetary value to opportunity and intangible costs, in addition to actual dollars spent. Benefits included the replacement cost of buildings and computer hardware. Additionally, the value of life is measured based on marginal values placed on marginal reductions in life span. The results of this analysis showed that the school is receiving almost negligible benefits for the substantial incurred costs to reduce the risk of attack. This fact is largely due to the near zero risk before and after the post-September 11 security measures were implemented.
Description
MBA Professional Report
Rights
This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.
URI
http://hdl.handle.net/10945/9827
Collections
  • 1. Thesis and Dissertation Collection, all items
  • 7. Master of Business Administration (MBA) Professional Projects

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