Risk analysis

Question 1

Qualitative risk assessment

Answer 1

is a method used to evaluate and prioritize risks based on subjective judgment rather than numerical data

Question 2

ARO (annualized rate of occurrence)

Answer 2

a metric used in risk management and quantitative risk analysis to estimate the frequency with which a specific risk event is expected to occur within a year

Question 3

AV (asset value)

Answer 3

refers to the monetary value or significance of an asset to an organization

Question 4

EF (Exposure Factor)

Answer 4

is a key concept in risk management and quantitative risk analysis that represents the percentage of an asset’s value that is likely to be lost or damaged as a result of a specific risk event or threat

Question 5

SLE (Single Loss Expectancy)

Answer 5

is a metric used in risk management to estimate the monetary loss that an organization could expect from a single occurrence of a specific risk event. It is calculated by multiplying the asset value (AV) by the exposure factor (EF)

Question 6

ALE (Annualized Loss Expectancy)

Answer 6

is a risk management metric that estimates the expected monetary loss for an asset or a set of assets over a year due to a specific risk event or threat

Question 7

Risk appetite

Answer 7

refers to the amount and type of risk that an organization is willing to accept in pursuit of its objectives

Question 8

Risk Appetite Posture

Answer 8

refers to the specific stance or approach an organization takes toward risk, outlining how much risk it is willing to accept in various areas of its operations and decision-making

Question 9

Risk tolerance

Answer 9

refers to the degree of variability in investment returns or the amount of risk that an organization or individual is willing to withstand in pursuit of their objectives