Quantitative Risk Analysis

Question 1

What is Quantitative Risk Analysis?

Answer 1

Method of evaluating risks using numerical measurements

Question 2

What is the EF in the Quantitative Risk Analysis?

Answer 2

Exposure Factor

Proportion of an asset that is lost in an event

Example:
0% (no loss)
HQ Flooding = 70% Lost assets
EF = 70%

Question 3

What is the SLE in the Quantitative Risk Analysis?

Answer 3

Single Loss Expectancy

Monetary value expected to be lost in a single event

Example:
0% (no loss)
100% (total loss)
$100,000 (Asset) x 70% EF = $70,000 SLE

Question 4

What is the ARO in the Quantitative Risk Analysis?

Answer 4

Annual Rate Of Occurrence

Estimated frequency with which a threat is expected to occur in a year

Question 5

What is the ALE in the Quantitative Risk Analysis?

Answer 5

Annualized Loss Expectancy

Expected annual loss from a risk

(SLE x ARO)