You work as a project manager for SoftTech Inc. A threat with a dollar value of $150,000 is expected to happen in your project and the frequency of threat occurrence per year is 0.001. What will be the annualized loss expectancy in your project?
I remember a similar practice question where we had to calculate the annualized loss expectancy, and I think it was just the threat value times the occurrence rate.
I'm not sure, but I think the formula for annualized loss expectancy is Threat Value x Annual Rate of Occurrence. So, it should be $150,000 x 0.001 = $150.
Lynelle
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