Is this scenario Qualitative? With an SLE of $10,000, you…
Is this scenario Qualitative? With an SLE of $10,000, you have to hope this scenario never happens. However, based upon analysis of historical weather patterns in the area, and given the shoddy construction and limited electrical protections of the building the server farm sits in, this seems to be a likely possibility. So, you should determine how much the organization is likely to lose, per year, on such a scenario. You can calculate this if you know a couple of other pieces of information. First, you need to know about how often to expect a severe storm in the area, say on an annual basis. This annualized rate of occurrence (ARO) could be used with the SLE value given earlier to determine your loss expectancy for one year. SLE × ARO = Annual loss expectancy (ALE).
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