Definition[]
A break-even analysis is a
| “ | variant of cost-benefit analysis that estimates the threshold value at which a policy alternative's costs equal its benefits.[1] | ” |
Overview[]
"Analysts have applied this technique to homeland security by calculating the minimum threat probability required for the risk reduction benefits of a security policy to exceed the costs. If decision-makers believe the actual threat is greater than the calculated break-even threat level, then the expected benefits of the policy exceed the costs. The technique can also be applied to other uncertain parameters in the analysis."[2]
References[]
- ↑ DHS Lexicon Terms and Definitions, at 67.
- ↑ Id.