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Governance, Risk, Audit & Privacy · Intermediate

Asset Valuation

Determining the worth of an asset, including replacement cost, revenue impact, and intangible value, to support risk analysis.

Definition

Asset value (AV) can be based on purchase or replacement cost, contribution to revenue, value to competitors, liability if compromised, and reputation effects. Quantitative risk analysis requires a monetary AV to compute single loss expectancy. Data owners are typically best positioned to determine information asset value.

Example

A customer database is valued at $2 million considering breach notification costs, fines, and lost business.

Exam tip

The data or asset owner, not IT, determines value and classification.

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