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 is

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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