GSNA · Question #6
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 B. 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: C is…
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)
- CExposure Factor (EF)
- DSafeguard
How the community answered
(42 responses)- A2% (1)
- B74% (31)
- C17% (7)
- D7% (3)
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: 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: A 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: D is incorrect. Safeguard acts as a countermeasure for reducing the risk associated with a specific threat or a group of threats.
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