CSM Security Risk Assessment & Management 2

Question 1

A single loss event is estimated at $50,000 and is expected to occur once every five years. What is the annualized loss expectancy (ALE)?

Accepted Answer

$10,000

Answer

ARO is 0.2, so ALE = $50,000 × 0.2 = $10,000.

Question 2

A warehouse holds assets valued at $400,000. A fire would be expected to destroy 25% of them. What is the single loss expectancy?

Accepted Answer

$100,000

Answer

SLE = asset value × exposure factor = $400,000 × 0.25.

Question 3

Who is ultimately accountable for accepting residual risk in an organization?

Accepted Answer

Senior management or the designated risk owner

Answer

Risk acceptance is a business decision made by those with authority over the affected assets and budget.

Question 4

Which technique is a qualitative risk analysis method?

Accepted Answer

Risk matrix scoring based on expert judgment

Answer

Qualitative methods rank risks using descriptive scales rather than monetary values.

Question 5

A threat assessment primarily seeks to identify which of the following?

Accepted Answer

Adversaries and events capable of causing harm, with their intent and capability

Answer

Threat assessment characterizes who or what could cause harm; vulnerability assessment examines weaknesses.

CSM - Certified Security Manager Practice Test