Risk Management 101 for IT Professionals Essential Concepts - Quantitative Risk Assessments

The video tutorial explains the quantitative risk assessment process, focusing on key components such as asset value, exposure factor, single loss expectancy (SLE), annual rate of occurrence (ARO), and annualized loss expectancy (ALE). It highlights the importance of knowing specific details to perform accurate calculations and compares quantitative with qualitative risk assessments. A practical example involving a data center and earthquake insurance is used to illustrate the decision-making process.

Discuss why some organizations may prefer qualitative risk assessments over quantitative ones.

In the provided scenario, what factors were considered to determine whether to purchase building insurance?

What conclusion can be drawn about the cost of insurance compared to the annualized loss expectancy in the scenario?