it286_unit1Assignment_worksheet.docx Purdue University Global Assignment 1: Documentation, Policies, & Risk Management Course: IT 286 Network Security Concepts Part 1 1.In a short essay, briefly explain the form
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it286_unit1Assignment_worksheet.docx Purdue University Global Assignment 1: Documentation, Policies, & Risk Management Course: IT 286 Network Security Concepts Part 1 1.In a short essay, briefly explain the formula SLE x ARO = ALE. Give an example. (10 pts) The formula SLE x ARO = ALE means single loss expectancy multiplied by the annualized rate of occurrence equals the annualized loss expectancy. This formula is used to calculate risk by analyzing risk as a financial loss, or the annualized loss expectancy (McGraw, 2006). SLE x ARO = ALE is used during risk assessment. Single loss expectancy is the estimated monetary loss that will occur each time an asset is at risk. The annualized rate of occurrence is the estimated rate or frequency of a threat occurring in a year. Therefore, annualized loss expectancy is the product of both the SLE and the ARO. When calculating the annualized loss expectancy, SLE is the starting point. The formula to calculate the SLE is asset value or AV multiplied by exposure factor or EF. SLE can be thought of as a starting point. However, in order to represent more than one loss that an organization may undergo, the annualized rate of occurrence or ARO should be included in the formula to calculate the annualized loss expectancy or ALE. Then, the ALE is used to determine the cost of the risk (Cole, 2013). SLE x ARO = ALE is important during risk assessment. SLE begins with the product of asset value and exposure factor. The asset value of a server in an office m. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. .. . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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