Base case	Security measure A	Security measure B
Asset Value (AV)	100,000 $	100,000 $	100,000 $
Exposure Factor (EF)	80%	20%	80%
Single Loss Expectancy (SLE): = AV*EF
Annualized Rate of Occurrence (ARO)	50%	50%	25%
Annualized Loss Expectancy (ALE): = SLE*ARO
ALE Reduction for security measures	NA
Annualized security measures Cost	NA	17,000 $	4,000 $
Annualized Net security measures Value	NA

Please No Handwriting or Pics. Course Name : IT Security and Policies

Q)The goal of a risk tolerance is to weighs the probable cost of compromises against the costs of security measures. We need to compare two different scenarios of security measures and their related risk. Complete the following table and conclude about which security measure is the best.

Note that the ALE Reduction for security measures = the Annualized Loss Expectancy (ALE) without security measure the Annualized Loss Expectancy (ALE) with security measure.