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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.

Security and Privacy Governance, Risk Management, and Compliance Program

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)
  • A
    8% (2)
  • B
    4% (1)
  • D
    88% (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.

ASafeguard

A safeguard is a control implemented to protect an asset or reduce risk, not a measure of how frequently a threat occurs.

BSingle Loss Expectancy (SLE)

Single Loss Expectancy (SLE) is the monetary loss expected each time a specific threat materializes, not its frequency of occurrence.

CExposure Factor (EF)

Exposure Factor (EF) is the percentage of asset value lost due to a single successful threat event, not a measure of threat frequency.

DAnnualized Rate of Occurrence (ARO)Correct

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

Topics

#Risk Management#Quantitative Risk Analysis#Annualized Rate of Occurrence (ARO)

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