Create a cost and benefit analysis.

A company has a Ecommerce website that generates $500,000 per year.

Calculate the annualized rate of occurrence (ARO) and annualized loss expectancy (ALE) for each risk:

Category	Cost per incident	Frequency of occurrence
Programming errors	$1,000	2 per week
Information theft(hacker)	$2,000	1 per quarter
Information theft(employee)	$5,000	1 per year
Viruses	$1,000	1 per year
Denial of service attacks	$3,500	1 per 6 month
Natural diaster	$100,000	1 per 20 years

-Make sure to convert frequency of occurrence to yearly base.-

One year past, calculate the cost and benefit of controls that have been in place.

Category	Cost per incident	Frequency of occurrence	Cost of control	Type of control
Programming errors	$1,000	2 per week	$2500	Training
Information theft(hacker)	$2,000	1 per quarter	$10,000	Firewall
Information theft(employee)	$5,000	1 per year	$10,000	Physical security
Viruses	$1,000	1 per year	$10,000	Anti-virus
Denial of service attacks	$3,500	1 per 6 month	$10,000	Firewall
Natural diaster	$100,000	1 per 20 years	$15,000	Insurance