CSSLP · Question #196
CSSLP Question #196: Real Exam Question with Answer & Explanation
The correct answer is B: Annualized Rate of Occurrence (ARO). Annualized Rate of Occurrence (ARO) is a key quantitative risk management metric that quantifies the expected frequency of a specific threat occurring within a single year. It helps in calculating the overall financial impact of risks.
Question
Which of the following terms related to risk management represents the estimated frequency at which a threat is expected to occur?
Options
- ASingle Loss Expectancy (SLE)
- BAnnualized Rate of Occurrence (ARO)
- CSafeguard
- DExposure Factor (EF)
Explanation
Annualized Rate of Occurrence (ARO) is a key quantitative risk management metric that quantifies the expected frequency of a specific threat occurring within a single year. It helps in calculating the overall financial impact of risks.
Common mistakes.
- A. Single Loss Expectancy (SLE) represents the monetary loss expected each time a specific threat materializes, not the frequency of its occurrence.
- C. A safeguard, also known as a control, is a protective measure implemented to reduce risk, not a metric representing the frequency of a threat.
- D. Exposure Factor (EF) is a percentage representing the amount of an asset that is likely to be damaged or lost if a threat materializes, not the frequency of the threat itself.
Concept tested. Quantitative risk management - ARO
Reference. https://nvlpubs.nist.gov/nistpubs/Legacy/SP/nistspecialpublication800-30r1.pdf
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