Practice CISSP Exam Question #011

You are concerned about the risk that an avalanche poses to your $3 million shipping facility. Based on expert opinion, you determine that there is a 5 percent chance that an avalanche will occur each year. Experts advise you that an avalanche would completely destroy your building and require you to rebuild on the same land. Ninety percent of the $3 million value of the facility is attributed to the building and 10 percent is attributed to the land itself. What is the single loss expectancy of your shipping facility to avalanches?

  • $3,000,000
  • $2,700,000
  • $270,000
  • $135,000

Answer: [$2,700,000]  The SLE is the product of the AV and the EF. From the scenario, you know that the AV is $3,000,000 and the EF is 90 percent, based on that the same land can be used to rebuild the facility. This yields an SLE of $2,700,000.

Source:  https://www.brainscape.com/flashcards/business-continuity-and-disaster-recovery-994638/packs/1774328

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