C. Guidelines help clarify processes to maintain standards. Guidelines tend to be less formal than policies or standards.
A. It does not matter how frequent a loss is projected (only once every 60 years, in this case). What does matter is that each occurrence will be disastrous: SLE (single loss expectancy) is equal to asset value (AV) times exposure factor (EF). In this case, asset value is $2 million and the exposure factor is 1.
D. ALE (annual loss expectancy) is equal to the SLE times the annualized rate of occurrence. In this case, the SLE is $2 million and the ...
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