Which of the following terms related to risk management represents the estimated frequency at which a threat is expected to occur?

The correct answer is D. Annualized Rate of Occurrence (ARO). The Annualized Rate of Occurrence (ARO) is a number that represents the estimated frequency at which a threat is expected to occur. It is calculated based upon the probability of the event occurring and the number of employees that could make that event occur. Answer option C…

Security Leadership and Management

Question

Options

ASafeguard
BSingle Loss Expectancy (SLE)
CExposure Factor (EF)
DAnnualized Rate of Occurrence (ARO)

How the community answered

(50 responses)

A
2% (1)
C
4% (2)
D
94% (47)

Explanation

The Annualized Rate of Occurrence (ARO) is a number that represents the estimated frequency at which a threat is expected to occur. It is calculated based upon the probability of the event occurring and the number of employees that could make that event occur. Answer option C is incorrect. The Exposure Factor (EF) represents the % of assets loss caused by a threat. The EF is required to calculate the Single Loss Expectancy (SLE). Answer option B is incorrect. The Single Loss Expectancy (SLE) is the value in dollars that is assigned to a single event. SLE = Asset Value ($) X Exposure Factor (EF) Answer option A is incorrect. Safeguard acts as a countermeasure for reducing the risk associated with a specific threat or a group of threats.

Topics

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

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