Quantitative Risk Analysis

Question 1

What is Quantitative Risk Analysis?

Answer 1

Method that evaluates risks using numerical measurements

Question 2

What are the key components for Quantitative Risk Analysis?

Answer 2

● Single Loss Expectancy (SLE)
● Exposure Factor (EF)
● Annualized Rate of Occurrence (ARO)
● Annualized Loss Expectancy (ALE)

Question 3

What is the Exposure Factor (EF)?

Answer 3

Amount of assets lost in an event

Question 4

What is the Single Loss Expectancy (SLE)?

Answer 4

Monetary value expected to be lost in a single event.
Calculated as: (Asset Value x Exposure Factor)

Question 5

What is the Annualized Rate of Occurrence (ARO)?

Answer 5

Estimated frequency of threat occurrence within a year

Question 6

What is the Annualized Loss Expectancy (ALE)?

Answer 6

Expected annual loss from a risk.
Calculated as: (SLE x ARO)