## Quantitative Risk Analysis Matrix

### February 18, 2017

Introduction

The following post cover the basic units of quantitative risk analysis matrix.

Quantitative Risk Analysis Matrix

Basic Units:

 No’ Factor Short Name Factor Full Name Calculation Value Range Common Gathering Technics 1. AV Asset Value 0\$ or higher May include the values of: software, hardware, human resource, legal & regulations issues, organization downtime, reputation, customer confidence, post marketing & sales efforts, data value, service downtime, lost sales 2. EF Exposure Factor 0 – 1 (percent’s as decimals) Actuary, history incidents 3. SLE Single Loss Expectancy AV x EF n/a 4. ARO Annualized Rate of Occurrence 0 incident or higher in a year Actuary, history incidents 5. ALE Annualized Loss Expectancy SLE x ARO n/a

Sample calculation:

AV (Asset Value) = 10,000\$

EF (Exposure Factor) = 0.1 (10% of the assets will be destroyed by Threat X, such as fire or theft)

SLE (Single Loss Expectancy) = 10,000\$x0.1=1,000\$

ARO (Annualized Rate of Occurrence) = 0.2 (I.e. – 1 incident in each 5 years)

ALE (Annualized Loss Expectancy) = 1,000\$x0.2=200\$