Case Scenario: ABC Company’s data center in Houston is valued at $1,000,000. It is estimated that a flood occurred to it would damage 50% of value of the data center. Official statistics indicate that...



Case Scenario: ABC Company’s data center in Houston is valued at $1,000,000. It is estimated that a flood occurred to it would damage 50% of value of the data center. Official statistics indicate that the probability of the data center getting flooded is once every 10 years.



Question 1: What is the single loss expectancy (SLE) from flooding in this case?

Question 2: What is the annual loss expectancy (ALE) from flooding in this case?






Note:
You need to show the formula and calculation work for each answer.



Jun 07, 2022
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