Risk management process · Question 11 of 12

A laptop theft causes 5,000 euros of damage each time and happens four times a year on average. Disk encryption would reduce the damage to 1,000 euros per case and costs 6,000 euros per year. What does the calculation show?

1 answer is correct. Hard

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Answer

  • A The measure pays off because it prevents 16,000 euros of damage per year

Explanation

Before, the ALE is 5,000 × 4 = 20,000 euros, afterwards 1,000 × 4 = 4,000 euros. The measure therefore reduces the expected damage by 16,000 euros per year and costs only 6,000 euros. That some residual risk remains is normal and does not argue against the measure.

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