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1. What is risk leverage?
2. What are the basic steps used in risk analysis?
3. You work for an online retail store. Your website is your source of e-commerce and represents about 50%-60% of your yearly sales. You are asked to conduct a quantitative risk analysis for your boss. She wants an idea of what it would cost the company should the website be lost due to a catastrophic fire (i.e. the entire web farm is lost). Assume the outage would be one full week. (i.e. 7 days). The relevant data is as follows Outage duration 7 days Annual income from web site $1,000,000 Asset Value of web farm $300,000 Annual Rate of Occurance 1 in 15 Cost of Controls $10,000 a. Calculate the Annual Loss Expectancy (ALE) b. Calculate the risk leverage if the ARO after controls are put in place is 1 in 100
4. Describe the weaknesses of a quantitative risk assessment.
5. Distinguish the difference between a vulnerability, a threat and a control
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