CRISC IT Risk Assessment Practice Question
In a quantitative risk analysis using FAIR, which of the following best represents Loss Magnitude (LM)?
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
✓
Primary Loss + Secondary Loss
In FAIR, Loss Magnitude (LM) is the sum of Primary Loss (direct costs) and Secondary Loss (indirect costs) resulting from a loss event.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Primary Loss + Secondary Loss
Why this is correct
Correct. LM = Primary Loss + Secondary Loss in FAIR.
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Single Loss Expectancy (SLE)
Why it's wrong here
In FAIR, Loss Magnitude (LM) is the probable cost of a single loss event, derived from primary and secondary loss factors, not a pre-calculated annualised figure. SLE is tempting because it also expresses a single-event monetary loss, but SLE is a component of Annualised Loss Expectancy (ALE) and assumes a fixed asset value and exposure factor, whereas LM in FAIR explicitly models uncertainty through loss event frequency and probable loss distributions. SLE would be correct in a classic quantitative risk analysis using ALE, but not in FAIR’s scenario-based, probabilistic framework.
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Threat Event Frequency × Vulnerability
Why it's wrong here
That is Loss Event Frequency (LEF), not Loss Magnitude.
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Annualized Loss Expectancy (ALE)
Why it's wrong here
ALE is a function of frequency and magnitude, not magnitude alone.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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