<!-- Copyright (c) 2026 defconxt. All rights reserved. -->
<!-- Licensed under AGPL-3.0 — see LICENSE file for details. -->
---
name: implementing-security-budget-management
description: >-
  Plan, allocate, track, and optimize security budgets including capital
  vs operational expenditure, ROI analysis, vendor cost optimization,
  and financial reporting for executive stakeholders.
domain: cybersecurity
subdomain: security-leadership
tags:
  - security-budget
  - financial-planning
  - roi-analysis
  - cost-optimization
  - capex-opex
  - vendor-cost
version: "1.0"
author: defconxt
license: AGPL-3.0
metadata:
  mitre-attack: []
---

# Implementing Security Budget Management

## Overview

Security budget management translates risk priorities into financial
allocations. This covers budget planning, cost modeling, ROI calculation,
spend tracking, and financial reporting to demonstrate security value.

## Prerequisites

| Requirement | Purpose |
|---|---|
| Financial planning tools | Spreadsheet or budgeting software |
| Vendor contracts | Current security tool licensing costs |
| Risk assessment data | Quantified risk for ROI calculations |

## Key Concepts

### Budget Planning Framework

```python
budget_model = {
    "total_budget": 2_500_000,
    "allocation": {
        "personnel": 0.45, "tooling": 0.25, "compliance": 0.10,
        "training": 0.08, "incident_reserve": 0.07, "innovation": 0.05,
    },
}
```

## Workflow

1. **Inventory current spend** — Catalog all security expenditures
2. **Map spend to risk** — Align items to risk reduction outcomes
3. **Model scenarios** — Baseline, growth, and constrained budget models
4. **Calculate ROI** — Quantify risk reduction per dollar via FAIR
5. **Optimize vendors** — Consolidate tools, renegotiate, eliminate shelfware
6. **Present business case** — Translate to business value terms
7. **Track and report** — Monthly spend tracking, quarterly variance

## Verification

| Check | Method |
|---|---|
| Workflow completed | All steps executed and documented |
| Output validated | Results match expected format and content |
| Quality assured | Peer review or automated validation passed |

## References

- [NIST Cybersecurity Framework](https://www.nist.gov/cyberframework)
- [MITRE ATT&CK](https://attack.mitre.org/)
