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ID: 3814559 • Letter: H

Question

home / study / engineering / computer science / questions and answers / an organization determines that the probability ... Question: An organization determines that the probability of... Bookmark An organization determines that the probability of unauthorized access to a database that contains personally identifiable information (PII) about its clients and employees is 5% in a year. The total estimate of the loss due to this exposure is estimated to be 5 million dollars. This includes losses resulting from loss of reputation, business operations, fines imposed by FCC, legal fees. After consulting with a security firm, a product was identified that could implement stronger access control and that could allow security administrator to track such an unauthorized access. The total cost of the product is $500,000, plus $10,000/year for maintenance. The product should work well for next five years. It is estimated that, if implemented, it will protect from 90% of all such attacks.

1.We want to know whether the organization should purchase this product. What is the Single Loss Expectancy (SLE)? (Please enter digits only – dollar amount)

2. What is the Annualized Rate of Occurrence (ARO)? Percentage only What is the calculated Annualized Loss Expectancy (ALE)? (Please enter digits only dollar amount)

3. What would be the ARO if the countermeasure is implemented? Percentage %

4. What would be the corresponding ALE? (Please enter digits only dollar amount)

5. What is the countermeasure cost for a year? (Please enter digits only dollar amount)

6. Should the organization purchase this product? (Please enter Yes or No)

Explanation / Answer

1. Single Loss Expectancy = Asset value * exposure factor

Answer: $ 500,000

Explaination: Asset value is 500,000

Asset value will be reduced by 5 million dollars if the exposure happens, then exposure factor = 1

2. Annualized Rate of Occurrence = 5%

ALE = $ 25000

Explaination: SLE * ARO = 500,000 * 0.05