The chance of a hard drive failure is once every three years. The cost to buy a new hard drive is $300. It will require 10 hours to restore the OS and softwa

re to the new hard disk. It will require a further 4 hours to restore the database from the last backup to the new hard disk. The recovery person earns $10/hour. Calculate the SLE, ARO, and ALE. Assume the EF = 1 (100%).

What is the closest approximate co

st of this replacement and recovery operation per year?

A. $146

B. $1320

C. $440

D. $100

The annualized loss expectancy (ALE) is the product of the annual rate of occurrence (ARO) and the single loss expectancy (SLE).

Suppose than an asset is v

alued at $100,000, and the Exposure Factor (EF) for this asset is 25%. The single loss expectancy (SLE) then, is 25% * $100,000, or $25,000.

In our example the ARO is 33%, and the SLE is 300+14*10 (as EF=1). The ALO is thus: 33%*(300+14*10) which equals 14

6.

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