You are the risk official in Techmart Inc.
You are asked to perform risk assessment on the impact of losing a server.
For this assessment you need to calculate monetary value of the server.
On which of the following bases do you calculate monetary value?
Click on the arrows to vote for the correct answer
A. B. C. D.A.
The monetary value of the server should be based on the cost of its replacement.
However, the financial impact to the enterprise may be much broader, based on the function that the server performs for the business and the value it brings to the enterprise.
Incorrect Answers: B, C, D: Cost of software is not been counted because it can be restored from the back-up media.
On the other hand' Ale for all risk related to the server does not represent the server's value.
Lastly, the original cost may be significantly different from the current cost and, therefore, not relevant to this.
As the risk official in Techmart Inc., to perform a risk assessment on the impact of losing a server, it is necessary to determine the monetary value of the server. This value represents the financial loss the organization may incur in the event of a server failure.
In calculating the monetary value of the server, there are different bases that could be considered. Let's review the options given:
A. Cost to obtain replacement: This represents the cost of purchasing a new server to replace the one that is lost. This option may be a good choice if the server is relatively new and the replacement cost is not too high. However, if the server is older or if the replacement cost is high, this option may not reflect the actual monetary value of the server.
B. Original cost to acquire: This represents the cost of acquiring the server when it was first purchased. This option may be useful if the server is relatively new and has not yet depreciated significantly in value. However, if the server is older, the original cost may not reflect its current value.
C. Annual loss expectancy: This represents the expected annual loss that would result from the loss of the server. This option takes into account factors such as lost productivity, lost revenue, and the cost of repairing or replacing the server. This option may be a good choice as it considers the overall impact of losing the server over time.
D. Cost of software stored: This represents the cost of the software stored on the server. This option may be useful if the server contains critical software that is difficult or expensive to replace. However, it does not take into account the value of the server itself.
In summary, the best option for calculating the monetary value of the server depends on factors such as the age and condition of the server, the cost of replacement, the value of any software stored on the server, and the expected impact of losing the server on the organization's operations and revenue. Therefore, option C (Annual loss expectancy) may be the best choice for calculating the monetary value of the server in most cases, as it provides a comprehensive assessment of the potential impact of losing the server.