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Question 434 - CAS-004 discussion

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A company is in the process of refreshing its entire infrastructure The company has a business-critical process running on an old 2008 Windows server If this server fails, the company would lose millions of dollars in revenue. Which of the following actions should the company should take?

A.
Accept the risk as the cost of doing business
Answers
A.
Accept the risk as the cost of doing business
B.
Create an organizational risk register for project prioritization
Answers
B.
Create an organizational risk register for project prioritization
C.
Calculate the ALE and conduct a cost-benefit analysis
Answers
C.
Calculate the ALE and conduct a cost-benefit analysis
D.
Purchase insurance to offset the cost if a failure occurred
Answers
D.
Purchase insurance to offset the cost if a failure occurred
Suggested answer: C

Explanation:

Calculating the Annual Loss Expectancy (ALE) and conducting a cost-benefit analysis is a critical part of risk management. The ALE will help the company understand the potential losses associated with the server failure per year, which can then be weighed against the cost of mitigating the risk (e.g., replacing the server or implementing redundancies). This analysis will inform the decision on the best course of action to manage the risk associated with the aging server.

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asked 02/10/2024
Sukhpreet Sidhu
40 questions
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