16.1 Risk Management Fundamentals

What was the main consequence of the Amazon Prime Day server overload?

• Loss of approximately $99 million in sales

• Increased sales due to publicity

• Improved website traffic management

• Positive social media attention

What is considered an external threat?

• Natural disaster

• Cyber attack

• Outdated technology

• Employee error

What is an example of an internal threat?

• Natural disasters

• Cyber attacks from hackers

• Competitors' market strategies

• Employees leaking passwords

How is Single Loss Expectancy (SLE) calculated?

• Asset value multiplied by exposure factor

• Asset value divided by exposure factor

• Asset value plus exposure factor

• Asset value minus exposure factor

What does Annual Loss Expectancy (ALE) represent?

• Average loss from a specific threat per occurrence

• Total potential loss from all threats in a year

• Potential loss from a single threat in a year

• Total value of all assets

What factor is considered when calculating the exposure factor?

• The total annual revenue of the company

• The annual rate of occurrence of the threat

• The percentage of the asset affected by a threat

• The total number of assets

What does the annual rate of occurrence (ARO) indicate?

• The total value of assets lost annually

• The annual budget allocated for risk management

• The number of times a threat is expected to occur in a year

• The percentage of assets affected by a threat annually

What is a qualitative risk assessment primarily used for?

• Calculating the exact financial loss

• Prioritizing risks based on impact and likelihood

• Determining the asset value of a company

• Calculating the exposure factor of an asset

Which response to risk involves eliminating the risk entirely?

• Risk mitigation

• Risk acceptance

• Risk avoidance

• Risk transfer

Which risk response involves sharing the risk with another party?

• Risk mitigation

• Risk acceptance

• Risk avoidance

• Risk transfer