Your company has a single, centralized Web-based retail sales system. Orders come in 12 hours per day, 364 days per year. Sales average $500,000 per day. Attacks against the retail sales system occur on a daily basis. For the retail sales system, there is a 1% chance of a hacker bringing the system down. The mean time to restore the system is 6 hours. What is the ALE for this system?
A. $912,500
B. $250,000
C. $500,000
D. $910,000
D
Explanation: The annualized loss expectancy (ALE) for the system is $910,000. The asset value (AV) is $500,000. The exposure factor (EF) is 0.5 (6 hours/12 hours).
Single loss expectancy (SLE) = AV * EF = $500,000 * 0.5 = $250,000
Annualized rate of occurrence (ARO) = 0.01 * 364 = 3.64
Annualized loss expectancy (ALE) = SLE * ARO = $250,000 * 3.64 = $910,000
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