Suppose XYZ Software Company faces the threats given in the following table. Using the table, calculate the ARO and ALE for each threat category that XYZ Software Company faces. Threat Category Cost per Incident (SLE) Frequency of Occurrence Programmer mistakes $5,000 1 per week Loss of intellectual property $75,000 1 per year Assume a year has passed and XYZ has improved security by applying a number of controls. Using the information from the following table, calculate the post-control ARO and ALE for each threat category listed. Cost per Frequency of Cost of Threat Category Incident Occurrence Control Type of Control Programmer mistakes $5,000 1 per month $20,000 Training Loss of intellectual property $75,000 1 per 2 years $15,000 Firewall/IDS Calculate the Cost Benefit Analysis (CBA) for each threat category. For each threat category, determine if the proposed control is worth the costs.

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter9: Current Liabilities And Contingent Obligations
Section: Chapter Questions
Problem 5C: Various Contingency Issues Skinner Company has the following contingencies: 1. Potential costs due...
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Q1.
Suppose XYZ Software Company faces the threats given in the following table. Using the table,
calculate the ARO and ALE for each threat category that XYZ Software Company faces.
Threat Category
Cost per Incident (SLE)
Frequency of Occurrence
Programmer mistakes
$5,000
1 per week
Loss of intellectual property
$75,000
1 per year
Assume a year has passed and XYZ has improved security by applying a number of controls.
Using the information from the following table, calculate the post-control ARO and ALE for
each threat category listed.
Cost per
Incident
Frequency of
Cost of
Threat Category
Occurrence
Control
Type of Control
Programmer mistakes
$5,000
1 per month
$20,000
Training
Loss of intellectual property
$75,000
1 per 2 years
$15,000
Firewall/IDS
Calculate the Cost Benefit Analysis (CBA) for each threat category. For each threat category,
determine if the proposed control is worth the costs.
Transcribed Image Text:Q1. Suppose XYZ Software Company faces the threats given in the following table. Using the table, calculate the ARO and ALE for each threat category that XYZ Software Company faces. Threat Category Cost per Incident (SLE) Frequency of Occurrence Programmer mistakes $5,000 1 per week Loss of intellectual property $75,000 1 per year Assume a year has passed and XYZ has improved security by applying a number of controls. Using the information from the following table, calculate the post-control ARO and ALE for each threat category listed. Cost per Incident Frequency of Cost of Threat Category Occurrence Control Type of Control Programmer mistakes $5,000 1 per month $20,000 Training Loss of intellectual property $75,000 1 per 2 years $15,000 Firewall/IDS Calculate the Cost Benefit Analysis (CBA) for each threat category. For each threat category, determine if the proposed control is worth the costs.
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