richman is considering buying insurance for each smartphone.use the ALE to detrmine the usefulness of this safeguard.for example,they can purchase insurance for each device for $25.00 per year.The safeguard value is $25x 1,000 devices, or $25,000.it is estimated that if the insurance is purchased the ARO will decrease to 5.Should the company purchase the insurance?

Question

richman is considering buying insurance for each smartphone.use the ALE to detrmine the usefulness of this safeguard.for example,they can purchase insurance for each device for $25.00 per year.The safeguard value is $25x 1,000 devices, or $25,000.it is estimated that if the insurance is purchased the ARO will decrease to 5.Should the company purchase the insurance?
Current ALE=
ARO with control =5
ALE with control=  (current ALE-ALE with control)
safeguard value(cost of control)=25,000
Realized savings=  (savings with control-safe guard value)

Emmanuel · Answer

SLE =37