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you know that the AV is $3,000,000 and the EF is 90 percent,
                    based on the fact that the same land can be used to rebuild the

                    facility. This yields an SLE of $2,700,000.

                9.  D. This problem requires you to compute the ALE, which is the
                    product of the SLE and the ARO. From the scenario, you know that
                    the ARO is 0.05 (or 5 percent). From question 8, you know that the
                    SLE is $2,700,000. This yields an SLE of $135,000.

              10.  A. This problem requires you to compute the ALE, which is the
                    product of the SLE and ARO. From the scenario, you know that the
                    ARO is 0.10 (or 10 percent). From the scenario presented, you

                    know that the SLE is $7.5 million. This yields an SLE of $750,000.

               11.  C. The strategy development task bridges the gap between business
                    impact assessment and continuity planning by analyzing the
                    prioritized list of risks developed during the BIA and determining
                    which risks will be addressed by the BCP.

               12.  D. The safety of human life must always be the paramount concern

                    in business continuity planning. Be sure that your plan reflects this
                    priority, especially in the written documentation that is
                    disseminated to your organization’s employees!

               13.  C. It is difficult to put a dollar figure on the business lost because of
                    negative publicity. Therefore, this type of concern is better
                    evaluated through a qualitative analysis.

               14.  B. The single loss expectancy (SLE) is the amount of damage that
                    would be caused by a single occurrence of the risk. In this case, the

                    SLE is $10 million, the expected damage from one tornado. The
                    fact that a tornado occurs only once every 100 years is not reflected
                    in the SLE but would be reflected in the annualized loss expectancy
                    (ALE).

               15.  C. The annualized loss expectancy (ALE) is computed by taking the
                    product of the single loss expectancy (SLE), which was $10 million
                    in this scenario, and the annualized rate of occurrence (ARO),

                    which was 0.01 in this example. These figures yield an ALE of
                    $100,000.

               16.  C. In the provisions and processes phase, the BCP team actually
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