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Summary it286 unit1Assignment worksheet.docx Purdue University Global Assignment 1: Documentation, Policies, & Risk Management Course: IT 286 Network Security Concepts Part 1 1.In a short essay, briefly explain the formula SLE x ARO = ALE. Give an exampl$4.99
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Summary it286 unit1Assignment worksheet.docx Purdue University Global Assignment 1: Documentation, Policies, & Risk Management Course: IT 286 Network Security Concepts Part 1 1.In a short essay, briefly explain the formula SLE x ARO = ALE. Give an exampl
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it286 unit1Assignment Purdue University Global Assignment 1: Documentation, Policies, & Risk Management Course: IT 286 Network Security Concepts Part 1 1.In a short essay, briefly explain the formula SLE x ARO = ALE. Give an example. (10 pts) The formula SLE x ARO = ALE means single los...
,Unit 1 Assignment – Do not modify the text in the gray boxes 2
Part 1
1. In a short essay, briefly explain the formula SLE x ARO = ALE. Give an example. (10 pts)
The formula SLE x ARO = ALE means single loss expectancy multiplied by the
annualized rate of occurrence equals the annualized loss expectancy. This formula is
used to calculate risk by analyzing risk as a financial loss, or the annualized loss
expectancy (McGraw, 2006). SLE x ARO = ALE is used during risk assessment.
Single loss expectancy is the estimated monetary loss that will occur each time an asset
is at risk. The annualized rate of occurrence is the estimated rate or frequency of a
threat occurring in a year. Therefore, annualized loss expectancy is the product of both
the SLE and the ARO.
When calculating the annualized loss expectancy, SLE is the starting point. The
formula to calculate the SLE is asset value or AV multiplied by exposure factor or EF.
SLE can be thought of as a starting point. However, in order to represent more than
one loss that an organization may undergo, the annualized rate of occurrence or ARO
should be included in the formula to calculate the annualized loss expectancy or ALE.
Then, the ALE is used to determine the cost of the risk (Cole, 2013).
SLE x ARO = ALE is important during risk assessment. SLE begins with the
product of asset value and exposure factor. The asset value of a server in an office
may be $50,000 and the exposure factor may be 30%. The product of those shows that
the SLE or single loss expectancy is $15,000. Then, the ARO is typically 0.1, which
means that the risk occurs every 10 years. Finally, the product of the SLE and ARO
shows that the ALE or annualized rate of occurrence is $1,500.
, Unit 1 Assignment – Do not modify the text in the gray boxes 3
When calculating risk, the formula SLE x ARO = ALE is used. This occurs during
risk assessment. SLE means single loss expectancy, ARO means the annualized rate
of occurrence, and ALE means the annualized loss expectancy. Therefore, SLE x ARO
= ALE is single loss expectancy multiplied by the annualized rate of occurrence which
then equals the annualized loss expectancy.
2. Once a risk assessment has been completed,
a. Briefly explain the five actions you can use to reduce the risk.
After a risk assessment has been completed, five actions that can be taken to
reduce the risk include backup and disaster recovery, encryption, multi-factor
authentication, security awareness training, and vulnerability scans (Kemps, 2016).
Each of these actions can be used by an organization to reduce risk.
Backup and disaster recovery can protect an organization from data loss. With
this, if a disaster occurs, data will not all be completely lost. Using cloud data storage
can prevent lost data that may come from relying on backups on-site. It can also speed
up recovery from security breaches because there can be instant remote access to
replicated data (Kemps, 2016). Overall, backup and disaster recovery allows data to be
backed up and recovered in case of a disaster.
Encryption of data reduces risk because it can prevent unauthorized access. If
data is properly encrypted, such as with SSL or a secure socket layer, it can prevent
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