ISC2 Certified Cloud Security Professional (CCSP) Practice Question
During a quarterly governance meeting, the CISO asks for a single quantitative metric that will let executives compare cloud security risk exposure for each provider year over year. The metric must multiply the estimated probability of a threat being realized by the expected financial impact so that it can be trended and reported in dollars. Which risk metric best satisfies this requirement?
The requested metric is Annualized Loss Expectancy (ALE). ALE is calculated by multiplying the Single Loss Expectancy (the cost if an incident occurs once) by the Annualized Rate of Occurrence (the estimated probability of that incident happening in a year). The result is a monetary value that shows expected yearly loss, making it suitable for trending and comparing risk exposure across time or providers. Single Loss Expectancy provides only the impact of one incident and ignores probability. Key Performance Indicators focus on operational performance rather than risk, and Mean Time to Detect measures detection speed, not expected financial loss.
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What is Annualized Loss Expectancy (ALE)?
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How does Single Loss Expectancy (SLE) differ from Annualized Loss Expectancy (ALE)?
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Why are Key Performance Indicators (KPIs) and Mean Time to Detect (MTTD) not suitable metrics for risk exposure analysis?
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ISC2 Certified Cloud Security Professional (CCSP)
Legal, Risk and Compliance
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