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?
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.
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