Personnel cost to perform the process group "manage business resiliency and risk", including depreciation/amortization, per $1,000 revenue
This measure calculates cost related to personnel cost, including depreciation/amortization, to perform the process group "manage business resiliency and risk" per $1,000 business entity revenue. Personnel cost refers to employee personnel compensation (salaries and wages, bonuses, overtime and benefits) and fringe benefits (e.g. contributions made towards the employees' government retirement fund, workers compensation, insurance plans, savings plans, pension funds/retirement plans, stock purchase plans), and special allowances such as relocation expenses and car allowances. The process group "manage business resiliency and risk" includes [Including the processes required to rapidly adapt and respond to any internal or external opportunity, demand, disruption, or threat. Develop a more dynamic, strategic, and integrated approach to managing compliance obligations.]. This Cost Effectiveness measure is intended to help companies understand this cost expenditure related to the process group "Manage business resiliency and risk".
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Compute this Measure
Units for this measure are dollars.
Personnel cost to perform the process group "manage business resiliency and risk" / (Total business entity revenue * .001)
Key Terms
Total Annual Revenue/Net Revenue
Total annual revenue is net proceeds generated from the sale of products or services. This should reflect the selling price less any allowances such as quantity, discounts, rebates and returns. If your business entity is a support unit and therefore does not directly generate revenue, then provide the revenue amount for the units you support. For government/non-profit organizations, please use your non-pass-through budget. For insurance companies the total annual revenue is the total amount of direct written premiums, excluding net investment income. Note: Business entity revenue needs to only include inter-company business segment revenue when the transactions between those business segments are intended to reflect an arm's length transfer price and would therefore meet the regulatory requirements for external revenue reporting.
Personnel Cost
Personnel cost is the cost associated with personnel compensation and fringe benefits of employees (i.e., those classified as FTEs which includes both full-time and salaried/hourly employees) contributing to each respective process. Personnel cost should include all of the following costs.
Employee Compensation: Includes salaries and wages, bonuses, overtime and benefits.
Fringe: Includes contributions made towards the employees' government retirement fund, workers compensation, insurance plans, savings plans, pension funds/retirement plans, and stock purchase plans. This should also include special allowances, such as relocation expenses and car allowances.
Cost Effectiveness
Cost effectiveness measures are those in which two related variables, one of which is the cost and one of which is the related outcome related to the expenditure are used to determine a particular metric value.