Our companys strategic plans are critical to its success and

Our company\'s strategic plans are critical to its success, and if they were to be compromised, the damage could total $1million. We have an average of two serious external hacker attacks per day, and we have determined that each of these has a 0.01% chance of being successful. Given our annualized loss expectancy (ALE), how much should we budget for information security this year in order to combat these external threats to our vital data?

Solution

Solution:

B. $73,000

Explanation:

Total number of days in a year = 365

Average number of successful Hackers per day = 2

Loss can be done by Hackers = 365 * 2 = 730

Annualize Loss per Annum = 0.01%

Total Loss by Hackers = (0.01 / 100) * 730 = 0.0730

Total estimated damage per annum = $ 1,000,000

Budget for information security will be = (0.073 * 1,000,000) = $73,000