Analyze The Quantitative Approach To Risk Mitigation
Threat motivation, threat capabilities, ease of exploitation, and existing countermeasures are all considerations in determining the likelihood of a threat occurrence. Determining a numerical value to assess the likelihood of a threat happening is difficult. One of the primary approaches to risk calculation is the quantitative approach. The formulas and metrics used in the calculation of risk analysis using quantitative analysis involve single loss expectancy (SLE), annualized rate of occurrence (ARO), annualized loss expectancy (ALE), total cost of ownership (TCO), return on investment (ROI), and cost/benefit analysis (CBA).
Using an organization with which you are familiar and including real-world examples for that organization, prepare a short paper that explains the relationship between SLE, ARO, and ALE in determining risk and the impact these items will have on your organization. Structure your response as a professional position paper and NOT a scholarly or academic paper. Avoid explaining academic or theoretical concepts without relating them specifically to your organization and how they impact your organization.
Length: 3-5 pages not including titles and reference pages.
References: Support your paper with a minimum of 5 scholarly resources
Your paper should demonstrate thoughtful consideration of the ideas and concepts presented in the course and provide new thoughts and insights relating directly to this topic. Your response should reflect scholarly writing and current APA standards.
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Introduction
Risk management can be described as the action of assessing a perceived risk and validating if it has any effect and thereafter creating mechanisms that can readily mitigate the problem that may arise and hinder productivity or particular asset management (Carpignano, Golia, Di Mauro, Bouchon, Nordvik, 2009). Risk management is ultimately about being able to ensure the environment that an operation is being conducted is totally secure and faces no or minimal risks. The reality is that risk management is not a simple task of identification of risk, quantifying it in terms of cost and mitigating it, this is because risks develop from different sources and various assets can possess more than one risk. For an IT company that stores its information on servers can have its network facing a number of risk including: unauthorized access, the loss of data and lastly network failure. There are a number of ways through which risk management can be analyzed and in this case quantitative risk analysis will be addressed.
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