Estimated Frequency in Risk Management
Question
Which of the following terms related to risk management represents the estimated frequency at which a threat is expected to occur?
Answers
Explanations
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A. B. C. D.calculated based upon the probability of the event occurring and the number of employees that could make that event occur.
Answer: D is incorrect.
The Exposure.
The Annualized Rate of Occurrence (ARO) is a number that represents the estimated frequency at which a threat is expected to occur.
It is Safeguard acts as a countermeasure for reducing the risk associated with a specific threat or a group of threats.
The term related to risk management that represents the estimated frequency at which a threat is expected to occur is the Annualized Rate of Occurrence (ARO), which is option B.
Risk management involves identifying, assessing, and controlling risks that can affect an organization. The frequency at which a threat is expected to occur is an important factor in risk management, as it helps in determining the potential impact of a risk on an organization.
Annualized Rate of Occurrence (ARO) is a measure used to estimate the frequency of a threat occurring within a given period, typically one year. ARO is calculated by considering historical data, expert opinions, and other factors that can influence the likelihood of a threat occurring. For example, if a particular type of threat occurred three times in the last ten years, the ARO for that threat would be 0.3 (i.e., three times in ten years).
Single Loss Expectancy (SLE) is the expected monetary loss that would result from a single occurrence of a threat. It is calculated by multiplying the asset value by the exposure factor.
Exposure Factor (EF) represents the percentage of asset value that is likely to be lost in the event of a successful attack.
A safeguard is a countermeasure that is implemented to reduce the likelihood or impact of a risk. Safeguards can include technical controls such as firewalls and encryption, administrative controls such as policies and procedures, and physical controls such as locks and access controls.
Therefore, the correct answer to the question is B. Annualized Rate of Occurrence (ARO).
