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Question
A Sydney-based telecommunications company wants to assess the risk of reducing the number of quality checks during its release process.
This change has been forecast to save the company around $150,000 per year in quality assessment costs.
If a major release fails QA, it requires on average $40,000 in additional developer time to fix the error at the last minute.
The quality assessment cycles occurs every month, and on average 4 of the cycles reveal major flaws that need to be rectified prior to QA.
Calculate ALE (Annual Loss Expectancy) based on the scenario above, and decide whether the company should go forward with the plan to reduce quality checks?.
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