Question of the Day 11/13

When conducting a quantitative risk analysis, items are gathered and assigned numeric values so that cost/benefit analysis can be carried out. Which of the following provides the correct formula to understand the value of a safeguard?

A. (ALE before implementing safeguard) - (ALE after implementing safeguard) - (annual cost of asset) = value to the company
B. (ALE before implementing safeguard) - (ALE during implementation) - (annual cost of safeguard) = value to the company
C. (ALE before implementing safeguard) - (ALE after implementing safeguard) - (annual cost of safeguard) = value to the company
D. (ALE before implementing safeguard) + (ALE after implementing safeguard) - (annual cost of asset) = value to the company

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Comments

NotHackingYou

The first C "C. (ALE before implementing safeguard) - (ALE after implementing safeguard) - (annual cost of safeguard) = value to the company"

I think it is this one because if your ALE is 50K before and 10K after and the measure costs 5K this is a good deal. 50K - 10k - 5K = 35K. This number is positive so it is a good investment.

jt2929

CarlSaiyed wrote: »

The first C "C. (ALE before implementing safeguard) - (ALE after implementing safeguard) - (annual cost of safeguard) = value to the company"

I think it is this one because if your ALE is 50K before and 10K after and the measure costs 5K this is a good deal. 50K - 10k - 5K = 35K. This number is positive so it is a good investment.

Oops! Fixed. Nice catch.

gespenstern

C.............

jasonperry10

I think it's C

jt2929

C is correct.