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26 November, 22:19

Which of the following are the cost functions that are related to quantitative risk analysis

Single loss expectancy

Annualized rate of occurance

Annulaized loss expectancy

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Answers (1)
  1. 26 November, 23:00
    0
    Single loss expectancy

    Explanation:

    Single Loss Expectancy and Annualized Loss Expectancy are the two formulas that are used for the calculation of risk in general. The process of assessing a single loss that might happen if a single risk occurs is SLE. It only determines a single loss that can occur in an enterprise if a single risk occurs. It calculates the loss that occurs to an asset's value when an incident happens.

    SLE is a quantitative risk assessment tool. The Exposure factor and the Asset Value are the two important items that is to be considered when calculating SLE. It is the market factors and inflation that determines the changes in an asset value, whereas, the Exposure factor can be controlled by taking some preventive and safer actions.
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