A logistics enterprise operates a cloud-hosted fleet dispatch platform valued at an Asset … — CompTIA Security+

A logistics enterprise operates a cloud-hosted fleet dispatch platform valued at an Asset Value ( $AV$ ) of $\$750,000$ . A quantitative risk assessment reveals that a zero-day exploit could result in an Exposure Factor ( $EF$ ) of $40\%$ . Threat data establishes an Annual Rate of Occurrence ( $ARO$ ) of $0.25$ . Implementing a managed threat prevention control costs $\$20,000$ annually and is expected to reduce the $EF$ to $10\%$ . What is the net annual financial benefit of implementing this security control?

$\$36,250$ Answer
B
$\$56,250$
C
$\$75,000$
D
$\$18,750$

Answer

The net annual financial benefit of implementing the security control is

\$36,250

The baseline ALE is

\$75,000

(

750,000 \times 0.40 \times 0.25

). With the control, the new ALE is

\$18,750

(

750,000 \times 0.10 \times 0.25

), resulting in an annual loss reduction of

\$56,250

. Subtracting the annual safeguard cost of

\$20,000

yields a net annual financial benefit of

\$36,250

Step-by-Step Solution

Calculate the baseline Single Loss Expectancy (SLE) and Annual Loss Expectancy (ALE)

Baseline

SLE = \$750,000 \times 0.40 = \$300,000

; Baseline

ALE = \$300,000 \times 0.25 = \$75,000

Determines the expected annual loss without any risk mitigation controls.

Calculate the mitigated SLE and mitigated ALE after control implementation

Mitigated

SLE = \$750,000 \times 0.10 = \$75,000

; Mitigated

ALE = \$75,000 \times 0.25 = \$18,750

Determines the expected residual annual loss with the security control active.

Calculate the gross ALE reduction and net financial benefit

ALE_{reduction} = \$75,000 - \$18,750 = \$56,250

; Net Benefit

= \$56,250 - \$20,000 = \$36,250

Subtracting the annual operational cost of the safeguard from the gross loss savings yields the net financial benefit.

Key Concept

Quantitative Risk Assessment (ALE and Safeguard Net Financial Benefit)

Question

Answer

Step-by-Step Solution

Key Concept

Common Mistakes

Topics

More questions from this topic