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The company has a data center with an asset value of $2,000,000. The company forecasts that in the event of a flood from heavy rains that the Company will experience a 15% loss of data center assets including new equipment, cleanup and recovery, painting, and loss of operational work time during restoration. What is the single loss expectancy (SLE) if the Company estimates the flood will happen only 1 time in 15 years.
$140,000
$300,000
None of the answers is correct
$21,000
Asset value x exposure factor (or the % of the data center) that the company plans to lose in case of one flood = SLE (2.000.000 /100 * 15 = 300.000). The 1 in 15 years produces the ARO (Annual Rate of Occurrence) which when multiplied with the SLE produces the ALE (Annual Loss Expectancy) not the SLE. EDIT: Suggest make this question a single choice, not multiple choice question
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