Risk Management & Threat Analysis Flashcards

A warehouse asset is valued at $200,000 and a fire would destroy 25% of it. What is the single loss expectancy (SLE)?

Answer: $50,000

SLE equals asset value multiplied by exposure factor, so $200,000 × 0.25 = $50,000.

If the SLE for a theft event is $10,000 and the annualized rate of occurrence (ARO) is 0.5, what is the annualized loss expectancy (ALE)?

Answer: $5,000

ALE equals SLE × ARO, so $10,000 × 0.5 = $5,000 per year.

An organization buys an insurance policy to cover losses from cargo theft. Which risk treatment strategy is this?

Answer: Risk transfer

Insurance shifts the financial impact of a loss to a third party, which is risk transfer.

Which term describes the risk that remains after security countermeasures have been applied?

Answer: Residual risk

Residual risk is the level of risk left over once controls are in place.

A company decides to stop storing cash on site after repeated robbery attempts. Which risk treatment does this represent?

Answer: Risk avoidance

Eliminating the activity that creates the exposure is risk avoidance.

In a physical protection system, the adversary's task time after first detection must be greater than which value for the system to be effective?

Answer: The response force time plus alarm assessment time

Remaining delay after detection must exceed the time needed to assess the alarm and deploy the response force so adversaries are interrupted.

Which risk assessment approach relies on descriptive ratings such as low, medium, and high instead of dollar figures?

Answer: Qualitative analysis

Qualitative analysis uses relative descriptive scales rather than numeric monetary values.