Question

Sara, a security analyst, is trying to prove to management what costs they could incur if their customer database was breached. This database contains 250 records with PII. Studies show that the cost per record for a breach is $300. The likelihood that their database would be breached in the next year is only 5%. Which of the following is the ALE that Sara should report to management for a security breach?
A. $1,500
B. $3,750
C. $15,000
D. $75,000

Answer 1

Answer:

Total estimated breached cost = $3,750

Explanation:

Given:

Total records database contain = 250 record

Cost per record for a breach = $300

Estimated breached record = 5% = 0.05

Total estimated breached cost = ?

Computation of total estimated breached record :

Total estimated breached record = Total records database contain × Estimated breached record

Total estimated breached record = 250 × 0.05

Total estimated breached record = 12.5

Computation of total estimated breached cost:

Total estimated breached cost = Total estimated breached record × Cost per record for a breach

Total estimated breached cost = 12.5 × $300

Total estimated breached cost = $3,750