CRISC IT Risk Assessment Practice Question
A company calculates the annualized loss expectancy (ALE) for a server failure as $150,000. After implementing a backup solution costing $20,000 per year, the ALE drops to $30,000. What is the annualized benefit of the control?
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
✓
$100,000
Annualized benefit = reduction in ALE - annual control cost. Reduction in ALE = $150k - $30k = $120k. Benefit = $120k - $20k = $100k.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
$100,000
Why this is correct
Correct; $120k reduction minus $20k cost = $100k.
- ✗
$130,000
Why it's wrong here
Incorrect; miscalculation.
- ✗
$120,000
Why it's wrong here
Incorrect; that's the reduction, not net benefit.
- ✗
$20,000
Why it's wrong here
Incorrect; that's the cost.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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