CAS-002 · Question #865
An accountant at a small business is trying to understand the value of a server to determine if the business can afford to buy another server for DR. The risk manager only provided the accountant…
The correct answer is C. $96,000. Asset value can be back-calculated from SLE and exposure factor because SLE equals asset value multiplied by exposure factor, so asset value equals SLE divided by exposure factor.
Question
An accountant at a small business is trying to understand the value of a server to determine if the business can afford to buy another server for DR. The risk manager only provided the accountant with the SLE of $24,000, ARO of 20% and the exposure factor of 25%. Which of the following is the correct asset value calculated by the accountant?
Options
- A$4,800
- B$24,000
- C$96,000
- D$120,000
How the community answered
(35 responses)- A9% (3)
- B6% (2)
- C83% (29)
- D3% (1)
Why each option
Asset value can be back-calculated from SLE and exposure factor because SLE equals asset value multiplied by exposure factor, so asset value equals SLE divided by exposure factor.
A value of $4,800 results from incorrectly multiplying SLE by the ARO ($24,000 x 0.20), which computes ALE - not asset value.
A value of $24,000 simply restates the SLE and fails to account for the exposure factor of 25%, which must be divided out to recover the full asset value.
Rearranging the formula SLE = Asset Value x Exposure Factor gives Asset Value = SLE / Exposure Factor = $24,000 / 0.25 = $96,000. The ARO is not required to solve for asset value from a known SLE and exposure factor; it would only be needed to calculate ALE.
A value of $120,000 would be correct if the exposure factor were 20%, but the exposure factor given is 25%, so $24,000 / 0.25 = $96,000, not $120,000.
Concept tested: Deriving asset value from SLE and exposure factor
Source: https://csrc.nist.gov/glossary/term/single_loss_expectancy
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