• Quantitative Analysis (ALE=SLE x ARO)
  • ALE = Annualized Loss Expectancy (A dollar amount that estimates the loss potential from a risk in a span of year)
  • SLE = Single Loss Expectancy (A dollar amount that is assigned to a single event that represents the company’s potential loss)
  • ARO = Annualized Rate of Occurrence (Frequency of a threat expected to occur in a period of one year)

• Qualitative Analysis (Delphi Method)
• Quantitative vs. Qualitative (Pros & Cons)
• Protection Mechanisms/Countermeasures Selection
• Total Risk vs. Residual Risk
• Risk Control Strategies

Risk Control Strategies

• Avoidance
  • Apply safeguards that eliminate or reduce the remaining uncontrolled risks for a particular vulnerability.
• Transfer
  • Transfer risks to outside entities or other areas of the organization.
• Acceptance
  • Understand the consequences and accept risk.
• Mitigation
  • Putting in place some controls to reduce impact should vulnerabilities be exploited

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