CAS-004 Governance, Risk, and Compliance Practice Question
An organization is using the FAIR model to quantify risk. Which of the following is a primary component of the FAIR taxonomy?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Loss event frequency and loss magnitude
FAIR decomposes risk into loss event frequency and loss magnitude. These are core components used to calculate risk.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Inherent risk and residual risk
Why it's wrong here
Incorrect. These are general risk concepts, not specific FAIR components.
- ✗
Annualized loss expectancy and single loss expectancy
Why it's wrong here
Incorrect. ALE and SLE are outputs of risk quantification, not FAIR taxonomy components.
- ✓
Loss event frequency and loss magnitude
Why this is correct
Correct. These are the two main branches in FAIR.
- ✗
Threat event frequency and vulnerability
Why it's wrong here
Incorrect. Threat event frequency is part of FAIR, but vulnerability is not a primary component; FAIR uses 'resistance strength'.
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