Question

Lisa needs to calculate the total ALE for a group of servers used in the network. During the past two years, five of the servers failed. The hardware cost to replace each server is $3,500, and the downtime has resulted in $2,500 of additional loses. What is the ALE?

Answer 1

To calculate the ALE, multiply the probability of an event occurring by the potential loss from that event.

In this case, the ALE for the group of servers used in the network is $15,000.

Step-by-step explanation:

The ALE stands for Annualized Loss Expectancy. In this case, the event is a server failure.

The formula for ALE is: ALE = Probability of occurrence per year x Potential loss per occurrence

Let's calculate the ALE:

First, we need to determine the probability of a server failure.

In the past two years, five servers have failed.

So, the probability of a server failure per year is 5/2 = 2.5.

Next, we need to calculate the potential loss per occurrence.

The hardware cost to replace each server is $3,500, and the downtime has resulted in $2,500 of additional losses.

So, the potential loss per occurrence is $3,500 + $2,500

= $6,000.

Now, we can calculate the ALE:

ALE = 2.5 x $6,000

= $15,000.

Therefore, the ALE for the group of servers used in the network is $15,000.