An organization determines that the probability of unauthorized access to a data

Question

An organization determines that the probability of unauthorized access to a database that contains personally identifiable information (PII) about its clients and employees is 5% in a year. The total estimate of the loss due to this exposure is estimated to be 5 million dollars. This includes losses resulting from loss of reputation, business operations, fines imposed by FCC, legal fees. After consulting with a security firm, a product was identified that could implement stronger access control and that could allow security administrator to track such an unauthorized access. The total cost of the product is $500,000, plus $10,000/year for maintenance. The product should work well for next five years. It is estimated that, if implemented, it will protect from 90% of all such attacks. We want to know whether the organization should purchase this product.

1.) What is the Single Loss Expectancy (SLE)? $[SLE] (Please enter digits only)

2.) What is the Annualized Rate of Occurrence (ARO)? [ARO] %

3.)What is the calculated Annualized Loss Expectancy (ALE)? $[ALE] (Please enter digits only)

4.)What would be the ARO if the countermeasure is implemented? [nARO] %

5.)What would be the corresponding ALE? $ [nALE] (Please enter digits only)

6.)What is the countermeasure cost for a year? $ [cost] (Please enter digits only)

7.)Should the organization purchase this product? [final] (Please enter Yes or No)

Explanation / Answer

Solution:

SLE =AV*EF

=(510000*5)/100

=25500

Total Loss due to this exposure

= 5M USD=

50,00,000

Rate of Occurrence (RO in 5 years)

=50,00,000/25500

=196.5

Annualized Rate of Occurrence

=((197/5)/197)*100

=20% 0r 40

Annualized Loss Expectancy (ALE)

=SLE*ARO= (25500

)=25,000*40=

10,00.000

After counter measures 90% will not happen so

(197*10)/100

=20

ARO after counter measure

= 20/5=4 or (4/20)*10

0= 20%

ALE after counter measures

= 25500*4=

1,02,000

Cost of counter measure is 5,00,000*(5*10,000)

=5,50,000 USD for five years.-----------6

Yes, The organization should buy this product as loss is reduced---------7.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.