Question
AllOnline Company is an e-business providing goods and services online to their customers. Their web-portal generates about $10000 in sales per each hour. The CIO
AllOnline Company is an e-business providing goods and services online to their customers. Their web-portal generates about $10000 in sales per each hour. The CIO of AllOnline has estimated that if the system were to fail, the average downtime would be about 2 hours per incident. It is anticipated (assume with 100% annual probability) that AllOnline will likely experience 4 downtime incidents in a given year due to internal computer system problems.
Question: A preventative control would be purchased to maintain more redundant computers and communication lines where possible, at an annualized cost of $5,000, which would reduce the expected downtime to 1 hour per incident (from 2) . What would the dollar amount of AllOnlines current residual expected risk at this point be? (note: when entering the resulting number below, please do not use any separators (, or .), just enter the digits and only positive numbers). |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started