ISC2 Systems Security Certified Practitioner (SSCP) Practice Question
Your company runs an online retail workload on AWS. A quantitative risk study identifies two threat events: Event A may cost USD 200,000 per occurrence and is expected once every 10 years; Event B may cost USD 40,000 per occurrence and is expected three times per year. Management sets a risk tolerance of maximum USD 60,000 in Annual Loss Expectancy per threat. Based on risk quantification, which statement is correct?
Event B exceeds the tolerance, while Event A is within tolerance.
Event A exceeds the tolerance, while Event B is within tolerance.
Both events exceed the tolerance and require treatment.
Neither event exceeds the tolerance; both are acceptable.
Annual Loss Expectancy (ALE) is calculated by multiplying the Single Loss Expectancy (SLE) by the Annual Rate of Occurrence (ARO).
Event A: SLE = 200,000; ARO = 0.1 (once every 10 years). ALE = 200,000 × 0.1 = 20,000.
Event B: SLE = 40,000; ARO = 3. ALE = 40,000 × 3 = 120,000. Management's risk tolerance is 60,000 per threat. Event A's ALE (20,000) is below the threshold, so it falls within tolerance. Event B's ALE (120,000) exceeds the threshold and therefore requires treatment. The correct statement is that only Event B exceeds the defined tolerance, while Event A is within tolerance. The other options either mis-apply the ALE formula or misinterpret the numeric results.
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What is Annual Loss Expectancy (ALE)?
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What is Single Loss Expectancy (SLE)?
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ISC2 Systems Security Certified Practitioner (SSCP)
Risk Identification, Monitoring and Analysis
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