Compute the annual loss expectancy (ALE) for the loss of a data server whose replacement value is $30,000, the occurrence of loss of data due to hacking is 5 percent annually, and the potential loss is $20,000.
What will be an ideal response?
Identify all assets to be assessed.
Assign a dollar value to the cost of losing or recreating an asset.
Provide a list of the major threats posed against each asset.
Use historic data to determine the occurrence of each threat in a typical year.
Estimate the potential loss in dollars per major threat for each asset per year.
Compute the annual loss expectancy (ALE) by multiplying the occurrence and potential loss.
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