A hospital network evaluates the financial exposure associated with a potential ransomware incident targeting its central Picture Archiving and Communication System (PACS) database server cluster. The estimated Asset Value () of the PACS cluster is . Threat intelligence and risk assessment analysts determine that a ransomware outbreak would result in an Exposure Factor () of (). Historical risk data indicates an Annualized Rate of Occurrence () of for this type of attack. What is the baseline Annualized Loss Expectancy (), in US dollars, for the PACS database cluster prior to implementing any additional security controls?
Answer: 70000 USD
Answer
The baseline Annualized Loss Expectancy (ALE) for the PACS cluster is $70,000.
Quantitative risk calculations determine the expected annual financial loss () using two dependent steps: first computing the Single Loss Expectancy (), and then scaling by the annual frequency ().
Step-by-Step Solution
Key Concept
Quantitative Risk Assessment (ALE Calculation)