What is the value of exposure factor if the asset is lost completely?
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A. B. C. D.A.
Exposure Factor represents the impact of the risk over the asset, or percentage of asset lost.
For example, if the Asset Value is reduced to two third, the exposure factor value is 0.66
Therefore, when the asset is completely lost, the Exposure Factor is 1.0
Incorrect Answers: B, C, D: These are not the values of exposure factor for zero assets.
In the context of risk management, exposure factor (EF) represents the percentage of asset value that is lost or compromised due to a risk event. In other words, it is the impact of a risk event on the asset value.
When an asset is lost completely, the exposure factor is 100%, which means the entire value of the asset is lost. Therefore, the answer to the question is not A, C, or D, but rather infinity (B).
To better understand this concept, consider an example of a server that has a value of $10,000. If the server is lost completely due to a risk event, such as a fire or theft, the exposure factor would be 100%. This means that the value of the asset lost due to the risk event is $10,000.
In risk assessment and management, exposure factor is used to calculate the expected loss due to a risk event. The expected loss is calculated by multiplying the asset value by the exposure factor and the annual rate of occurrence (ARO) of the risk event. The formula is as follows:
Expected Loss = Asset Value x Exposure Factor x ARO
Therefore, when an asset is lost completely, the expected loss is the full value of the asset, and the exposure factor is 100%.
In conclusion, the value of exposure factor when an asset is lost completely is 100%, which represents the entire value of the asset lost. Therefore, the answer to the question is B, infinity.