1. Risk Analysis Case Study (group assignment) Suppose a department has determined that some users have gained unauthorized access to the computing system. Managers fear the intruders might intercept or even modify sensitive data on the system. Cost to reconstruct correct data is expected to be $1,000,000 with 10% likelihood per year. One approach to addressing this problem is to install a more secure data access control problem. The cost of access control software is $50,000 with 50% effectiveness. Here is the summary of risk and control: - Cost to reconstruct correct data = $1,000,000 with 10% likelihood per year - Effectiveness of access control software: 50% - Cost of access control software: $50,000

Determine the expected annual total costs due to loss and controls. Also, determine whether the costs outweigh the benefits of preventing or mitigating the risks.

2. Personal Risk Analysis (group assignment) Perform risk analysis of your own personal computer with your lab partner. - List five kinds of threats / vulnerabilities of your personal computer - Estimate the likelihood of each, expressed in between 0% and 100% - Estimate the monetary loss that would occur from the harm - Compute the annual loss from these kinds of harm