Question

please make your answer clear

A03: Quantitative and Qualitative Risk Assessment Analysis Quantitative Risk Assessment Single loss expectancy (SLE): Total loss expected from a single incident Annual rate of occurrence (ARO Number of times an incident is expected to occur in a year Annual loss expeclanay (ALE:Expected loss for a yeir ALE SLEARO Safeguard value: Cost of a safeguard or control Scenario 1: Destitute Oil Corporation has 50 gas stations around the country each with 8 gas pumps. The gas pumps currently have old type credit card readers and have many vulnerabilities to be exploited by cyber criminals. In the past year, there were 20 security incidents, each costing $500 on average. With this information, calculate the following (9 pts): Destitute Oil Corp considers replacing the existing card readers with the new readers. Use the ALE calculated above to determine the usefulness of this safeguard. For exampie, Destitute Oil Corp could renew the card readers, which would cost S15 per gas pump per year. The total safeguard value is $15 X 50 x 8 devices, or $6,000 per year. It is estimated that if the card readers are renewed for all the gas pumps, the ARO of security incidents will decrease to 2 with same average cost per incident Should the company make the reader replacement? Determine the effectiveness of the safeguard (fill in blank boxes) (12 pts): ue con Should Destitute Oil Corp buy the new credit card readers? Explain your answer (9 pts) 2018 by Jones & Bartlett Learning, LLC, an Ascend Learning Company. All nghts reserved. ww.jbleaming.com Page

Answer 1

Current

SLE =$500

ARO = 20

ALE = $ 10,000

With new Safeguard the figures are as follows :

Current ALE = $ 10,000

ARO with control = 2

ALE with control = 500*2 = $ 1000

Savings with Control = 10,000 -1000 = $ 9000

Safeguard Costs = $ 6000

Savings = $ 3000

It therefore makes sense to buy the new credit card readers