unit6 assignment 2
Qualitative Risk Assessment
Single loss expectancy (SLE): Total loss expected from a single incident
Annual rate of occurrence (ARO): Number of times an incident is expected to occur in a year
Annual loss expectancy (ALE): Expected loss for a year
ALE = SLE X ARO
Safeguard value: Cost of a safeguard or control
Scenario: Richman Investments provides high-end smartphones to several employees. The value of each smartphone is $500, and approximately 1,000 employees have these company-owned devices. In the past year, employees have lost or damaged 75 smartphones.
With this information, calculate the following:
SLE = ___500_________
ARO = ___75________
ALE = ____37,501________
Richman is considering buying insurance for each smartphone. Use the ALE to determine the usefulness of this safeguard. For example, Richman could purchase insurance for each device for $25 per year. The safeguard value is $25 X 1,000 devices, or $25,000. It is estimated that if the insurance is purchased, the ARO will decrease to 5. Should the company purchase the insurance?
Determine the effectiveness of the safeguard:
Current ALE = ____37,500__________
ARO with control = 5x500
ALE with control = ___2,500__________
Savings with control = ____35,00_______ (Current ALE - ALE with control)
Safeguard value (cost of control) = $25,000
Realized savings = ____15,000_________ (Savings with control - safeguard value)
Should Richman buy the insurance? Explain your answer.
__________Yes. Insurance will provide the company with protection to it’s equipment and assets if damaged or misplaced. ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Qualitative Risk Assessment
Probability: The likelihood that a threat will exploit a
Single loss expectancy (SLE): Total loss expected from a single incident
Annual rate of occurrence (ARO): Number of times an incident is expected to occur in a year
Annual loss expectancy (ALE): Expected loss for a year
ALE = SLE X ARO
Safeguard value: Cost of a safeguard or control
Scenario: Richman Investments provides high-end smartphones to several employees. The value of each smartphone is $500, and approximately 1,000 employees have these company-owned devices. In the past year, employees have lost or damaged 75 smartphones.
With this information, calculate the following:
SLE = ___500_________
ARO = ___75________
ALE = ____37,501________
Richman is considering buying insurance for each smartphone. Use the ALE to determine the usefulness of this safeguard. For example, Richman could purchase insurance for each device for $25 per year. The safeguard value is $25 X 1,000 devices, or $25,000. It is estimated that if the insurance is purchased, the ARO will decrease to 5. Should the company purchase the insurance?
Determine the effectiveness of the safeguard:
Current ALE = ____37,500__________
ARO with control = 5x500
ALE with control = ___2,500__________
Savings with control = ____35,00_______ (Current ALE - ALE with control)
Safeguard value (cost of control) = $25,000
Realized savings = ____15,000_________ (Savings with control - safeguard value)
Should Richman buy the insurance? Explain your answer.
__________Yes. Insurance will provide the company with protection to it’s equipment and assets if damaged or misplaced. ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Qualitative Risk Assessment
Probability: The likelihood that a threat will exploit a