ISC2 Certified Secure Software Lifecycle Professional (CSSLP) Practice Question
While performing quantitative risk analysis for a new customer data portal, you determine that a potential data-breach incident would cause an estimated loss of $250,000 each time it occurs. Historical data indicate the incident is likely once every four years. A new data loss-prevention (DLP) control, costing $30,000 per year to operate, is expected to cut the likelihood to once every ten years. Based on annualized loss expectancy (ALE), what is the net annual financial impact (benefit or loss) of deploying the DLP control?
It saves the full $37,500 each year because the control eliminates most of the risk.
There is no significant change; the cost and savings balance out to zero.
Annualized loss expectancy (ALE) is calculated by multiplying the single loss expectancy (SLE) by the annualized rate of occurrence (ARO).
Without the control: SLE = $250,000 ARO = 1/4 years = 0.25 ALE (current) = $250,000 × 0.25 = $62,500
With the DLP control: New ARO = 1/10 years = 0.10 Residual ALE = $250,000 × 0.10 = $25,000
Annual risk reduction = $62,500 − $25,000 = $37,500 Annual cost of the control = $30,000 Net annual benefit = $37,500 − $30,000 = $7,500
Therefore, implementing the DLP control yields a net annual savings of $7,500. The other options either ignore the control cost, mis-calculate ALE, or subtract in the wrong direction.
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ISC2 Certified Secure Software Lifecycle Professional (CSSLP)
Secure Software Lifecycle Management
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