CCP Quantitative Risk Assessment 2

Question 1

An organization calculates that a server failure has a 15% chance of occurring each year and would cost $200,000 to recover. What is the Annual Loss Expectancy (ALE)?

Accepted Answer

$30,000

Answer

ALE = ARO × SLE = 0.15 × $200,000 = $30,000.

Question 2

Which metric represents the percentage of an asset's value that would be lost in a single security incident?

Accepted Answer

Exposure Factor (EF)

Answer

Exposure Factor (EF) is the percentage of asset value lost per incident, used to calculate SLE.

Question 3

A risk analyst wants to determine the net benefit of implementing a $50,000 security control that reduces ALE from $120,000 to $40,000. What is the value of the control?

Accepted Answer

$30,000

Answer

Value = (ALE before - ALE after) - cost of control = ($120,000 - $40,000) - $50,000 = $30,000.

Question 4

In a Monte Carlo simulation for cyber risk, what does running thousands of iterations primarily help quantify?

Accepted Answer

The probability distribution of potential losses

Answer

Monte Carlo simulations model uncertainty by running many iterations to produce a probability distribution of outcomes.

Question 5

An asset valued at $500,000 has an exposure factor of 40%. What is the Single Loss Expectancy (SLE)?

Accepted Answer

$200,000

Answer

SLE = Asset Value × EF = $500,000 × 0.40 = $200,000.

(CCP) Certified Cyber Professional Practice Test

(CCP) Certified Cyber Professional Practice Test

CCP Quantitative Risk Assessment 2