Performance-based questions

Quantitative risk assessment worksheet

1. 1

   Exposure factor (EF)

   Expressed as a decimal for use in the formula.

   • 0.4
   • 40
   • 0.04
2. 2

   Single loss expectancy (SLE = AV × EF)

   • £24,000
   • £60,000
   • £150,000
3. 3

   Annualised rate of occurrence (ARO)

   The event occurs about once every five years.

   • 5
   • 0.2
   • 1
4. 4

   Annualised loss expectancy (ALE = SLE × ARO)

   • £4,800
   • £24,000
   • £120,000
5. 5

   A flood barrier costs £7,000 per year to maintain. Decision?

   • Implement it; any risk reduction is worthwhile
   • Do not implement; it costs more than the annual expected loss
   • Implement it; the SLE exceeds the cost
6. 6

   Given that decision, which risk response fits best?

   • Mitigate by installing the barrier
   • Transfer via insurance, or accept with documentation
   • Avoid by closing the data centre