In performing a risk assessment on the impact of losing a server, the value of the server should be calculated using the:
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A. B. C. D.D.
The value of the server should be based on its cost of replacement.
The original cost may be significantly different from the current cost and, therefore, not as relevant.
The value of the software is not at issue because it can be restored from backup media.
The ALE for all risks related to the server does not represent the server's value.
In performing a risk assessment on the impact of losing a server, the value of the server should be calculated using the Annualized Loss Expectancy (ALE) method.
ALE is a commonly used approach in risk management, which involves multiplying the probability of a threat occurring by the cost of the potential loss. This gives an estimate of the expected annual cost of a particular risk.
To calculate the ALE for losing a server, the following steps should be taken:
Determine the value of the server: This should include not only the original cost of the server but also any additional costs associated with its acquisition, installation, and maintenance. This value should also take into account any software or data stored on the server that would be lost if it were to fail.
Determine the annual rate of occurrence (ARO) of the threat: This involves estimating the frequency with which the threat of losing the server is likely to occur in a given year. For example, if the server is in a high-risk location, the ARO may be higher than if it were in a more secure location.
Determine the single loss expectancy (SLE) for the threat: This involves estimating the cost of a single occurrence of the threat. For example, if the server were to fail and need to be replaced, the SLE would be the cost of a new server.
Calculate the ALE: This involves multiplying the ARO by the SLE. For example, if the ARO is 0.1 (i.e., the threat is expected to occur once every 10 years) and the SLE is $50,000 (i.e., the cost of replacing the server), the ALE would be $5,000 per year.
Once the ALE has been calculated, it can be used to determine the cost-effectiveness of various risk management strategies. For example, if the cost of implementing a backup system for the server is less than the ALE, it may be cost-effective to do so.