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