Risk Management Concepts and Assessments

This video tutorial explores how to calculate the impact of risks and different approaches to responding to identified risks. It begins with a case study of Amazon's Prime Day server overload, highlighting the importance of planning for potential threats. The video discusses various types of threats, including external, environmental, and internal, and explains quantitative and qualitative risk assessments. It concludes with strategies for responding to risks, such as avoidance, transfer, acceptance, and mitigation.

What was the main risk event discussed in the introduction section?

• A flood affecting data centers

• A fire in a server room

• A cyber attack on Amazon

• A server overloaded with internet traffic

Which of the following is considered an external threat?

• A fire in the server room

• A cyber attack

• An employee error

• Outdated technology

What does Single Loss Expectancy (SLE) represent?

• The likelihood of a threat occurring

• The monetary loss from a single threat event

• The total annual loss from all threats

• The cost of mitigating a threat

How is Annual Loss Expectancy (ALE) calculated?

• The difference between SLE and annual rate of occurrence

• The sum of all SLEs

• SLE divided by the annual rate of occurrence

• SLE multiplied by the annual rate of occurrence

What is a key difference between qualitative and quantitative risk assessments?

• Qualitative assessments use numerical values

• Quantitative assessments are less complex

• Quantitative assessments use descriptive words

• Qualitative assessments prioritize risks using words

In a qualitative risk assessment, what does a matrix help determine?

• The likelihood of a risk occurring

• The exact monetary loss of a risk

• The number of risks a company faces

• The overall risk level based on impact and likelihood

What does risk avoidance involve?

• Sharing the risk with another party

• Completely eliminating the risk

• Reducing the impact of the risk

• Accepting the risk as it is

Which response to risk involves sharing the responsibility with another party?

• Risk mitigation

• Risk transfer

• Risk acceptance

• Risk avoidance

When might a company choose to accept a risk?

• When the risk is unavoidable

• When the cost of alternatives is higher than the risk

• When the risk can be transferred

• When the risk is not understood

What is a common method to mitigate risks?

• Ignoring the risk

• Accepting the risk as inevitable

• Transferring the risk to another company

• Setting up firewalls and antivirus software