Risk Management: Estimated Threat Frequency

Estimated Threat Frequency

Question

Which of the following terms related to risk management represents the estimated frequency at which a threat is expected to occur?

Answers

Explanations

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A. B. C. D.

B.

The term related to risk management that represents the estimated frequency at which a threat is expected to occur is the Annualized Rate of Occurrence (ARO), which is option B.

Explanation of the other terms:

A. Safeguard: A safeguard is a security measure implemented to protect an asset from a threat.

C. Single Loss Expectancy (SLE): SLE is the expected monetary loss from a single occurrence of a threat.

D. Exposure Factor (EF): EF is the percentage of loss that would occur if a threat is realized. It represents the amount of damage that a specific threat could cause to an asset or organization.

ARO is a critical concept in risk management. It estimates the frequency at which a specific threat is expected to occur within a given period. It is calculated by dividing the total number of threats that are expected to occur in a year by the total number of assets that are being protected. ARO helps security professionals to understand the likelihood of a security breach or incident occurring and is used to calculate the Annual Loss Expectancy (ALE), which is the expected loss due to a security breach in a year. By calculating ALE, security professionals can determine the cost-effectiveness of implementing security measures and compare the potential loss to the cost of safeguarding the assets.