CGRC · Question #13
Which of the following terms related to risk management represents the estimated frequency at which a threat is expected to occur? Response:
The correct answer is D. Annualized Rate of Occurrence (ARO). In quantitative risk analysis, the Annualized Rate of Occurrence (ARO) specifically measures the estimated frequency at which a threat event is expected to happen within a one-year period.
Question
Which of the following terms related to risk management represents the estimated frequency at which a threat is expected to occur? Response:
Options
- ASafeguard
- BSingle Loss Expectancy (SLE)
- CExposure Factor (EF)
- DAnnualized Rate of Occurrence (ARO)
How the community answered
(25 responses)- A8% (2)
- B4% (1)
- D88% (22)
Why each option
In quantitative risk analysis, the Annualized Rate of Occurrence (ARO) specifically measures the estimated frequency at which a threat event is expected to happen within a one-year period.
A safeguard is a control implemented to protect an asset or reduce risk, not a measure of how frequently a threat occurs.
Single Loss Expectancy (SLE) is the monetary loss expected each time a specific threat materializes, not its frequency of occurrence.
Exposure Factor (EF) is the percentage of asset value lost due to a single successful threat event, not a measure of threat frequency.
Annualized Rate of Occurrence (ARO) is a quantitative risk assessment term that quantifies how often a specific threat event is likely to occur over a one-year period. It is a critical component used in calculating the Annualized Loss Expectancy (ALE).
Concept tested: Quantitative Risk Analysis Terms
Source: https://csrc.nist.gov/glossary/term/annualized_rate_of_occurrence
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