Chapter 5 Difficult Flashcards
1
Q
SLE
A
A
single loss expectancy
Calculated as Asset Value x Exposure Factor (EF)
70% x say $5,000 (cost of asset)
2
Q
EF
A
Proportion of asset lost in an event (0% to 100%)
● Indicates asset loss severity
ex flooding hitting headquarters would be 70% loss in assets
3
Q
ARO
A
annualized rate of occurrence
● Estimated frequency of threat occurrence within a year
● Provides a yearly probabilit
4
Q
ALE
A
Annualized Loss Expectancy (ALE)
SLE x ARO
5
Q
Risk level or threshold
A
determined by combining the impact and likelihood
prioritize risks high medium and low
6
Q
Risk Appetite
A
willingness to pursue risk
expansionary
conservatieve
neutral
7
Q
Risk Owner
A
Responsible for managing the risk
monitors implements mitigation actions and updates risk register
