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CAS-002 · Question #864
CAS-002 Question #864: Real Exam Question with Answer & Explanation
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Question
The risk manager at a small bank wants to use quantitative analysis to determine the ALE of running a business system at a location which is subject to fires during the year. A risk analyst reports to the risk manager that the asset value of the business system is $120,000 and, based on industry data, the exposure factor to fires is only 20% due to the fire suppression system installed at the site. Fires occur in the area on average every four years. Which of the following is the ALE?
Options
- A$6,000
- B$24,000
- C$30,000
- D$96,000
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