An enterprise data center hosts a critical database server with an estimated Asset Value (… — CompTIA Security+

An enterprise data center hosts a critical database server with an estimated Asset Value ( $AV$ ) of $\$300,000$ . Historical threat data indicates that power surge events occur once every 4 years ( $\text{ARO} = 0.25$ ), with each unmitigated event carrying an Exposure Factor ( $\text{EF}$ ) of $30\%$ . To mitigate this risk, the organization installs an industrial surge protection system that reduces the Exposure Factor to $5\%$ , without altering the frequency of occurrence. What is the new Annualized Loss Expectancy ( $\text{ALE}$ ), in dollars, after implementing this control?

Answer: 3750 $

Answer

The post-mitigation Annualized Loss Expectancy (ALE) is $3,750.

The post-mitigation Annualized Loss Expectancy (

\text{ALE}

) is computed using the formula

\text{ALE} = \text{AV} \times \text{EF} \times \text{ARO}

. Substituting the updated Exposure Factor of

5\%

(

0.05

) gives a Single Loss Expectancy (

\text{SLE}

) of

\$300,000 \times 0.05 = \$15,000

. Multiplying by the Annualized Rate of Occurrence of

0.25

results in an updated

\text{ALE}

\$15,000 \times 0.25 = \$3,750

Step-by-Step Solution

Calculate post-mitigation Single Loss Expectancy (SLE)

SLE =

300,000 * 0.05 =

15,000

SLE represents the monetary loss of a single incident, determined by multiplying the Asset Value ($300,000) by the post-mitigation Exposure Factor (5%).

Calculate post-mitigation Annualized Loss Expectancy (ALE)

ALE =

15,000 * 0.25 =

3,750

ALE measures the expected annual monetary loss, calculated by multiplying the post-mitigation SLE by the Annualized Rate of Occurrence (0.25).

Key Concept

Quantitative Risk Analysis (Post-Mitigation ALE)

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