Answers to Review Questions
1. C. Guidelines help clarify processes to maintain standards. Guidelines tend to be less formal than policies or standards.
2. B. SLE (single loss expectancy) is equal to asset value (AV) times exposure factor (EF). In this case, asset value is $2 million and exposure factor is 1/2.
3. E. ALE (annual loss expectancy) is equal to SLE times the annualized rate of occurrence. In this case, SLE is $1 million and the ARO is 1/60.
4. A. ARO (annualized rate of occurrence) is the frequency (in number of years) the event can be expected to happen. In this case, ARO is 1/60 or 0.0167.
5. B. Risk avoidance involves identifying a risk and making the decision to no longer engage in the actions associated with that risk.
6. B. ...
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