Final answer:
The assessment process that involves quantifying threats against potential costs and benefits in security is called risk calculation. It aligns with practices such as cost-benefit analysis and present discounted value, which help to determine the economic feasibility of investments and risk mitigation strategies.
Step-by-step explanation:
The process of weighing threats versus the likelihood of experiencing a security breach or attack by applying numbers and dollars to assess the situation is known as risk calculation. This process is integral to the field of risk management and cost-benefit analysis, which are practices commonly used within the realms of business, financial planning, and security strategies. When performing a risk calculation, security professionals take into account potential costs and compare them with the likelihood and magnitude of a threat. This action enables them to prioritize risks and decide on the most effective measures to mitigate them.
Cost-benefit analysis is a similar decision-making tool that involves comparing costs (what is sacrificed) and benefits (what is gained) to help make informed decisions. It is often represented in a T-shaped chart, which clearly delineates costs on one side against benefits on the other.
Additionally, present discounted value is a technique used to measure the value of investment by comparing present costs against future benefits, considering factors such as time and risk, to determine the net present value of an investment over time.