Question: The exposure factor ( EF ) is the amount of damage that the risk poses to the asset, expressed as a percentage of the asset

The exposure factor (EF) is the amount of damage that the risk poses to the asset, expressed as a percentage of the assets value. If the Business Continuity Plan (BCP) team consults with flood experts and determines that a flood would cause 80 percent damage to the building. The asset value of the building is worth Rs.20,00,000. The single loss expectancy (SLE) is the monetary loss that is expected each time the risk materializes. Calculate the single loss expectancy (SLE) due to a flood .
The Annual Rate of Occurrence (ARO)(from the likelihood analysis) is the number of times you expect a disaster to occur each year. The flood experts predict that a flood will occur once every 50 years. The annualized loss expectancy (ALE) is the monetary loss that the business expects to occur as a result of the risk harming the asset over the course of a year. Calculate the annualized loss expectancy (ALE) of the same building .

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