Risk Analysis 5.2 Flashcards
1
Q
Qualitative Risk Assessment
A
- Process of subjectively determining the impact of an event that affects a project, program, or business.
2
Q
Quantitative Risk Assessment
A
- Process of objectively determining the impact of an event that affects a project, program, or business.
3
Q
Annualized Rate of Occurrence (ARO)
A
- Representation of an event measured in a standard year.
4
Q
Asset Value (AV)
A
- The value of an asset to the organization.
- Amount of money it would take to replace an asset.
5
Q
Exposure Factor (EF)
A
- Percentage of value lost due to an incident.
6
Q
Single-Loss Expectancy (SLE)
A
- Value of a loss expected from a single event
- Calculated using the following formula
SLE = AV x EF
7
Q
Annualized Lost Expectancy (ALE)
A
- Represents the expected losses over the course of a year based on the ALE
ALE = SLE x ARO
8
Q
Number of Impacts of Risk Calculation
A
- Life
- Property
- Safety
- Finance
9
Q
Risk Likelihood
A
- A qualitative measurement of risk
- Risk can be classified as Rare, Possible, Almost Certain, etc.,
10
Q
Risk Probability
A
- A quantitative measurement of risk
- A statistical measurement
- Based on historical performance and the performance we might expect in the future
11
Q
Risk Appetite
A
- A broad description of risk-taking deemed acceptable
- The amount of accepted risk before taking any action to reduce that risk
12
Q
Risk Appetite Posture
A
- Qualitative description for readiness to take risk
- Conservative, neutral, and expansionary
13
Q
Risk Register
A
- A list of the risks associated with a system
- Identify and document the risk associated with each step
14
Q
Risk Tolerance
A
- An acceptable variance (usually larger) from the risk appetite
15
Q
Key Risk Indicator
A
- Part of the risk register
- Identifies risk that could impact the organization
