Case Study

User Generated

anerap75

Computer Science

Description

As the Business Continuity Manager, you assign responsibilities for the completion of the Business Impact Analysis to each member of your team. You explain to your staff that they will be responsible to calculate the annual loss expectancy (ALE) of assigned risks. Your staff looks at you bewildered, so you need to explain the formula to them and how to use it.

  • What explanation would you give so that your staff understands that formula?
  • Provide an example of how to use the formula.
  • Develop a matrix using the formula as part of your example.

The rubric for this assignment can be viewed when clicking on the assignment link.

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Explanation & Answer

Attached.

LOSS EXPECTANCY

1

Annual loss expectancy
Name
Institution

LOSS EXPECTANCY

2
Annualized loss expectancy

Explanation of formula to staff
Dzarma and Jibasen, (2015) defines Annualized Loss Expectancy of
assigned risk as the outcome of the annualized rate of occurrence and the single loss
expectancy. That is articulated scientifically as ALE= ARO*SLE. For example,
when the single loss expectancy is 25%, the total value of the asset is $100000, and
number of is 2 years. Consequently, SLE= 25%* $100000= $25000 Hence, ALE=
$25000* 2= $50000. The annualized loss expectancy ...


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