Question
A tech start-up company considers deploying a new email system. In their analysis, the company evaluates the identified risks and costs associated with an isolated non-reoccurring event where the current email system would go down for approximately 36 hours. What metric should the company utilize during this process?
A.Annualized Rate of Occurrence
B.Single Loss Expectancy
C.Annualized Loss Expectancy
D.Risk Identification
A.Annualized Rate of Occurrence
B.Single Loss Expectancy
C.Annualized Loss Expectancy
D.Risk Identification
Answers
GPT-4o mini
In the scenario described, the company is evaluating the impact of a specific isolated non-reoccurring event, which is the current email system going down for 36 hours. The appropriate metric to use in this case is:
**B. Single Loss Expectancy (SLE)**
Single Loss Expectancy is calculated to determine the potential loss from a single occurrence of a risk event. It helps the company understand the financial impact of the anticipated downtime of the email system.
- **Annualized Rate of Occurrence (ARO)** refers to how often a risk or loss is expected to happen within a year, which is not applicable to a specific isolated event.
- **Annualized Loss Expectancy (ALE)** is the product of the SLE and the ARO, representing expected losses over a year, again not suitable for a one-time occurrence analysis.
- **Risk Identification** is a process, not a metric, and relates to recognizing potential risks rather than measuring them.
Thus, for evaluating the financial impact of the isolated downtime of the email system, the Single Loss Expectancy (SLE) is the correct metric to use.
**B. Single Loss Expectancy (SLE)**
Single Loss Expectancy is calculated to determine the potential loss from a single occurrence of a risk event. It helps the company understand the financial impact of the anticipated downtime of the email system.
- **Annualized Rate of Occurrence (ARO)** refers to how often a risk or loss is expected to happen within a year, which is not applicable to a specific isolated event.
- **Annualized Loss Expectancy (ALE)** is the product of the SLE and the ARO, representing expected losses over a year, again not suitable for a one-time occurrence analysis.
- **Risk Identification** is a process, not a metric, and relates to recognizing potential risks rather than measuring them.
Thus, for evaluating the financial impact of the isolated downtime of the email system, the Single Loss Expectancy (SLE) is the correct metric to use.