A company estimates a loss of $2,374 per hour in sales if their website goes down. Their webserver hosting site’s documented downtime was 7 hours each quarter over the last two years. Using the information, what can the analyst determine?

A company estimates a loss of $2,374 per hour in sales if their website goes down. Their webserver hosting site’s documented downtime was 7 hours each quarter over the last two years. Using the information, what can the analyst determine?
A . Annualized loss expectancy
B . CVSS risk score
C . Total cost of ownership
D . Qualitative risk posture

View Answer

Answer: A

Explanation:

The annualized loss expectancy (ALE) is deduced by multiplying the single loss expectancy (SLE) by the annual rate of occurrence (ARO); in this example $2, 374 × (7 × 4), respectively. This is a form of Quantitative risk analysis. Qualitative risk posture is deduced by measuring and contrasting the likelihood (probability of occurrence) with the level of impact and by definition does not address risk using monetary figures. Total cost of ownership (TCO) is the sum of all costs (technical, administrative, environmental, et al) that are involved for a specific system, service, etc. CVSS risk scoring is not based off of this type of loss data.