Suppose XYZ Software Company has a new application development project with projected revenues of $$1\mathrm{.}2$ million. Using the following table, calculate the ARO and ALE for each threat category the company faces for this project.

XYZ Software Company $($Asset value: $$1,200,000$ in projected revenues$)$

Threat Category

Cost per Incident

Frequency of Occurrence

Programmer mistakes

$$5,000$

$1$ per week

Loss of intellectual property

$$75,000$

$1$ per year

Software piracy

$$500$

$1$ per week

Theft of information $($hacker$)$

$$2,500$

$1$ per quarter

Theft of information $($employee$)$

$$5,000$

$1$ per $6$ months

Web defacement

$$500$

$1$ per month

Theft of equipment

$$5,000$

$1$ per year

Viruses, worms, Trojan horses

$$1,500$

$1$ per week

Denial$-$of$-$service attack

$$2,500$

$1$ per quarter

Earthquake

$$250,000$

$1$ per $20$ years

Flood

$$250,000$

$1$ per $10$ years

Fire

$$500,000$

$1$ per $10$ years