A security administrator is tasked with calculating the total ALE on servers. In a two year period of time, a company has to replace five servers. Each server replacement has cost the company $4,000…

The correct answer is C. $17,500. ALE (Annual Loss Expectancy) = SLE × ARO. SLE (Single Loss Expectancy) = cost per incident = $4,000 (replacement) + $3,000 (downtime) = $7,000. ARO (Annualized Rate of Occurrence) = 5 servers over 2 years = 2.5 incidents per year. ALE = $7,000 × 2.5 = $17,500. The key is…

Security program management and oversight

Question

A security administrator is tasked with calculating the total ALE on servers. In a two year period of time, a company has to replace five servers. Each server replacement has cost the company $4,000 with downtime costing $3,000. Which of the following is the ALE for the company?

Options

A$7,000
B$10,000
C$17,500
D$35,000

How the community answered

(33 responses)

A
15% (5)
B
3% (1)
C
73% (24)
D
9% (3)

Explanation

ALE (Annual Loss Expectancy) = SLE × ARO. SLE (Single Loss Expectancy) = cost per incident = $4,000 (replacement) + $3,000 (downtime) = $7,000. ARO (Annualized Rate of Occurrence) = 5 servers over 2 years = 2.5 incidents per year. ALE = $7,000 × 2.5 = $17,500. The key is converting the 2-year event count into an annualized rate. $35,000 would be the total 2-year loss, not the annual figure. $7,000 is only the SLE. $10,000 incorrectly calculates the ARO or SLE.

Topics

#ALE#risk quantification#ARO#SLE

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