Quantitative Risk Analysis
Assign Asset Value (AV) -> Calculate Exposure Factor (EF) -> Calculate Single Loss Expectancy (SLE) -> Assess the Annualized Rate of Occurrence (ARO) -> Derive the Annualized Loss Expectancy (ALE) -> Perform Cost/Benefit analysis of countermeasures
Exposure Factor = %
Asset Value (AV)
Single Loss expectancy (SLE) SLE = AV * EF
Annualized rate of occurrence (ARO) = # / year
Annualized loss expectancy (ALE) = SLE * ARO or ALE = AV * EF * ARO
Annual cost of the safeguard (ACS) = $/year
Value or benefit of a safeguard = (ALE before safeguard - ALE after safeguard) - ACS
