5.2 Risk Analysis Flashcards

(20 cards)

1
Q

What is a qualitative risk assessment?

A

A qualitative risk assessment evaluates individual risk factors and their criteria.

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2
Q

How can a qualitative risk assessment be displayed?

A

In broad terms, often using a traffic light grid to show low, medium, or high risk.

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3
Q

What might be the overall risk level for legacy Windows clients with medium-level impact and high annualized rate of occurrence?

A

High.

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4
Q

What is the Annualized Rate of Occurrence abbreviated as?

A

ARO.

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5
Q

What does Asset Value (AV) represent?

A

The value of an asset to the organization, including effects on sales and potential fines.

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6
Q

What does the Exposure Factor (EF) measure?

A

The percentage of the asset value lost due to a specific risk.

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7
Q

What is Single-Loss Expectancy (SLE)?

A

The monetary loss expected from a single event occurring.

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8
Q

How is SLE calculated?

A

By multiplying the Asset Value (AV) by the Exposure Factor (EF).

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9
Q

What does Annualized Loss Expectancy (ALE) represent?

A

The total expected loss in a year from a specific risk.

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10
Q

How is ALE calculated?

A

By multiplying the Annualized Rate of Occurrence (ARO) by the Single-Loss Expectancy (SLE).

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11
Q

What is the highest priority concern in risk calculations?

A

Life.

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12
Q

What is the difference between risk likelihood and risk probability?

A

Likelihood is qualitative; probability is quantitative.

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13
Q

What is risk appetite?

A

The amount of risk an organization is willing to take.

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14
Q

What does risk tolerance refer to?

A

The larger variance of acceptable risk compared to risk appetite.

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15
Q

Fill in the blank: The register that documents risks associated with a project is called a ______.

A

risk register.

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16
Q

What is the purpose of a risk register?

A

To document individual risks and provide options to avoid them.

17
Q

What is a key risk indicator?

A

An indicator that details potential risks in a project.

18
Q

What should be assigned to each key risk indicator in a risk register?

A

An owner responsible for managing that particular risk.

19
Q

What needs to be balanced when resolving risks in a project?

A

The cost of resolving the risk and the potential cost of the risk to the company.

20
Q

True or False: A risk appetite posture can be classified as conservative, neutral, or expansionary.