Cisco Cyber Security Practice Exam

In risk analysis, what does the term "exposure factor" (EF) represent?

1. The percentage of asset loss from a specific threat

2. The monetary value of the asset

3. The likelihood of a threat occurring

4. The total number of threats identified

The correct answer is: The percentage of asset loss from a specific threat

The term "exposure factor" (EF) quantifies the potential loss associated with a specific risk scenario, expressed as a percentage of the asset's value. This measure helps organizations assess the severity of impact should a particular threat materialize. By indicating what fraction of the asset would be lost if the threat occurred, the exposure factor is crucial in calculating potential financial implications and prioritizing risk management efforts. Understanding exposure factor allows businesses to make informed decisions about how to allocate resources effectively for risk mitigation. For instance, if an asset valued at $100,000 has an exposure factor of 30%, this suggests that a specific threat could potentially cause a $30,000 loss, guiding the organization in evaluating the need for protective measures or insurance. In contrast, the other options focus on different aspects of risk analysis. The monetary value of an asset relates to the size of an investment but does not indicate the potential loss due to threats. The likelihood of a threat occurring reflects the probability aspect, while identifying total threats emphasizes risk identification rather than quantifying the potential impact on assets. Each of these components plays a role in a comprehensive risk assessment but does not specifically represent the concept of exposure factor.