Question

Quantitative risk assessment exercise A quantitative risk assessment exercise is included below. Your submission should include the calculations of the ROSI for the two scenarios. In the tutorial, we will quickly work through these calculations, but then focus the discussions on the limitations of making these calculations in such situations like this. Aspects of this exercise are perhaps a little dated, but it is still useful for the purposes of this discussion. Quantitative risk assessment exercise

Answer 1

To calculate the ROSI for the two scenarios in the quantitative risk assessment exercise, follow these steps: determine the ALE, calculate the EF, multiply the ALE by the EF, and calculate the ROSI.

Step-by-step explanation:

Quantitative Risk Assessment Exercise

To calculate the Return on Security Investment (ROSI) for the two scenarios in the quantitative risk assessment exercise, you need to follow these steps:

1. Determine the Annualized Loss Expectancy (ALE) for each scenario. ALE is calculated by multiplying the Single Loss Expectancy (SLE) by the Annualized Rate of Occurrence (ARO). SLE is the monetary value of a single loss event, and ARO is the estimated number of times the event will occur within a year.
2. Calculate the Exposure Factor (EF) for each scenario. EF represents the percentage of loss that would occur if a threat is realized.
3. Multiply the ALE by the EF to get the Annualized Loss Exposure (ALE) for each scenario.
4. Calculate the ROSI by subtracting the ALE from the investment cost and dividing the result by the investment cost, then multiplying by 100 to get a percentage.

By performing these calculations, you will be able to determine the ROSI for the two scenarios in the quantitative risk assessment exercise.