2C4F A FIRM IS CONSTRUCTING A RISK ANALYSIS TO QUANTIFY THE EXPOSURE...
282.
CSO: 2C4a
LOS: 2C4f
A firm is constructing a risk analysis to quantify the exposure of its data center to various
types of threats. Which one of the following situations would represent the highest
annual loss exposure after adjustment for insurance proceeds?
Frequency of
Occurrence
Loss
Insurance
(years)
Amount
(% coverage)
a.
1
$ 15,000
85.
b.
8
75,000
80.
c.
20
200,000
80.
d.
100
400,000
50.
Section D: Investment Decisions