Quantitative Risk Assessments

Question 1

Quantitative Risk Assessments

Based on numeric values $
Asset Values

Answer 1

QRA

Question 2

Quantitative Risk Assessments

percentage of asset value loss when negative incident occurs

Answer 2

Exposure Factor (EF)

Question 3

Quantitative Risk Assessments

how much loss is experienced during one negative incident

Answer 3

Single Loss Expectancy (SLE)

Question 4

Quantitative Risk Assessments

Single Loss Expectancy

Answer 4

Multiply asset value (AV) by exposure factor (EF)

Question 5

Quantitative Risk Assessments

Asset Value (AV) = $24,000

Exposure factor (EF) = 12.5 %

AV X EF = SLE

Answer 5

example of SLE

$24,000 x 0.125 = $3,000

Question 6

Quantitative Risk Assessments

Calculate

$3,000 = AV/$24,000 x EF/12.5%

risk of downtime

Answer 6

SLE = Asset Value (AV) x Exposure Factor (EF)

Question 7

Quantitative Risk Assessments

Expected number of yearly occurrences

ie: 2 - 3 x per year

Answer 7

Annualized rate of occurrence (ARO)

Question 8

Quantitative Risk Assessments

Total yearly cost of bad things happening
ALE = SLE x ARO

Answer 8

Annualized loss of expectancy (ALE)

Question 9

Quantitative Risk Assessments

ALE = SLE x ARO

ie: $2500 x 2 = $5,000

Answer 9

Spending less than $5,000 yearly to protect the asset is worthwile

Question 10

Quantitative Risk Assessments

ALE = SLE x ARO

$6,000 = $3,000 x 2 == Annualized loss expectency

Answer 10

Calculate Annualized Loss Expectancy

spending less than $6,000 to protect our ecommerce site is worthwhile

Question 11

Quantitative Risk Assessments

Calculated by multiplying the asset value (AV) by exposure value (EF)

Answer 11

SLE

Question 12

Quantitative Risk Assessments

calculated by multiplying the annualized rate of occurrence (ARO) by the SLE

Answer 12

ALE