Question

Scenario 1: Richman Investments provides high-end smartphones to several employees. The value of each smartphone is $500, and approximately 1,000 employees have these company-owned devices. In the past year, employees have lost or damaged 75 smartphones.With this information, calculate the following:a. SLEb. AROc. ALE

Answer 1

Answer:

a). SLE =$37.5

b). ARO =75

c). ALE = $2,812.5

Explanation:

a).Single loss Expectancy (SLE) is starting point in determining the single loss of an asset that will occur and calculated this;

SLE = asset value * exposure factor.

Asset value =$500,

Exposure factor is simply the percentage of asset lost.

In this case out of 1000 phones, 75 were damaged or loss.

In percentage;

75 ÷ 1000 =0.075, 0.075×100=7.5%(exposure factor).

Therefore,

SLE = $500×7.5%= $37.5.

b). ARO - Annual Rate of Occurrence is the number of times a threat on a single asset is expected to occur in one year.

In the case the damage or loss occured in 75 devices in one year.

c). ALE - Annualized loss Expectancy is the product of SLE and ARO.

Therefore;

ALE = $37.5 × 75 = $2,812.5.