Cisco Cyber Security Practice Exam

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Enhance your Cisco Cyber Security knowledge. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your Cisco Cyber Security Exam with our comprehensive quiz!

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If an organization has an asset value of $250,000 with an exposure factor of 5% and an annualized rate of occurrence of 2, what is the single loss expectancy (SLE)?

$2,500
$5,000
$12,500
$25,000

The correct answer is: $12,500

To calculate the Single Loss Expectancy (SLE), you can use the formula: SLE = Asset Value x Exposure Factor In the given scenario, the asset value is $250,000, and the exposure factor is expressed as a percentage, which needs to be converted into a decimal for the calculation. An exposure factor of 5% translates to 0.05 when expressed as a decimal. Plugging in the values: SLE = $250,000 x 0.05 SLE = $12,500 This correctly indicates that in the event of a loss, the organization can expect to lose $12,500 based on the asset value and the specified exposure factor. Understanding how to derive the SLE is crucial for risk management and helps organizations evaluate potential financial impacts from security incidents.