with complete solution 2025/2026
Risk Analysis - correct answer ✔Assets-Threats-Vulnerabilities-Exposure-Risk-Safeguards
Risk Management Philosophy - correct answer ✔1. Identify probabilities of loss
2. Reduce those probabilities
Risk management process is idealized - correct answer ✔Exact numbers are often difficult to obtain.
Exercise is often more important than outcome
Need to fit to situation
There are alternatives
(Benchmarking/Evaluation/Standards)
Exposure Factor (EF) - correct answer ✔The loss the org would experience if one specific asset is
exploited. Potential loss, express as a percentage
Single Loss Expectancy (SLE) - correct answer ✔Cost associated with a single realized risk against the
asset
SLE = EF * asset's value
Annualized Rate Occurrence (ARO) - correct answer ✔The expected frequency the threat or risk will
occur
Annualized Loss Expectancy (ALE) - correct answer ✔Possible yearly cost of all instances of a threat
against the asset