In performing a risk assessment on the impact of losing a server, the value of the server should be
calculated using the:

A.
original cost to acquire.

B.
cost of the software stored.

C.
annualized loss expectancy (ALE).

D.
cost to obtain a replacement.

Explanation:

The value of the server should be based on its cost of replacement. The original cost may be
significantly different from the current cost and, therefore, not as relevant. The value of the
software is not at issue because it can be restored from backup media. The ALE for all risks
related to the server does not represent the server’s value.