Risk calculation practice
Unlimited questions, each generated and checked in code: single loss expectancy, annualized rate of occurrence, annualized loss expectancy, exposure factor and the value of a safeguard. Type an answer, check it, and see the working.
Work it out, then check.
The formulas
| SLE | Asset value (AV) x exposure factor (EF) |
|---|---|
| ARO | Expected events in one year: once every 5 years is 0.2 |
| ALE | SLE x ARO |
| Safeguard value | ALE before - ALE after - annual cost of the safeguard |
Then make the decision
On the exam the numbers usually serve a judgement: accept, mitigate, transfer or avoid. The free diagnostic and the risk lesson put them to work.
Questions people ask
How do you calculate ALE?
Multiply the single loss expectancy by the annualized rate of occurrence. The SLE is the asset value times the exposure factor, the share of the value one event destroys.
What is the ARO for an event that happens once every four years?
0.25. The annualized rate of occurrence is the number of times the event is expected in one year, so once every four years is a quarter of an event a year.
How do you decide whether a safeguard is worth it?
Take the ALE before the safeguard, subtract the ALE after it, and subtract the safeguard's annual cost. A positive result means it saves more than it costs; a negative one means it does not, on cost alone.
Where is risk analysis on the CISSP exam?
Risk management concepts are objective 1.9 in Security and Risk Management, the largest domain at 16% of the exam outline. Questions often wrap the arithmetic in a decision a manager must make.
Are the questions the same every time?
No. Each question is generated fresh, with its answer worked out in code, so you can practice as long as you like. Nothing is stored or sent.