Question
Calculate the ALE for a manufacturing plant. The manufacturing plant has an output worth 100000 per day. The plant suffers from electricity outages on average
Calculate the ALE for a manufacturing plant. The manufacturing plant has an output worth 100000 per day. The plant suffers from electricity outages on average 5 times a year. An average outage typically lasts for 24 hours. What is the ALE for the plant due to electrical outages? To safeguard against this risk, the company plans to purchase a portable generator that can run for 12 hours before it needs to cool off and refuel for 12 hours (50% mitigation). The generator would cost 150000 to purchase. In addition to the first control, the company also plans on purchasing output insurance for 50000 a year. The insurance would cover up to 25% of production losses during a year. What is the residual risk after controls have been applied?
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