Ebidding company has a ecommerce website that generate $500,000 per year. Calculate the annualized rate of occurrence (ARO) and annualized loss expectancy (ALE) for each risk:

Category	Cost per incident	Frequency of occurrence
Programming errors	$1,000	2 per week
Information theft(hacker)	$2,000	1 per quarter
Information theft(employee)	$5,000	1 per year
Viruses	$1,000	1 per year
Denial of service attacks	$3,500	1 per 6 month
Natural diaster	$100,000	1 per 20 years

Note: read background materials, and also make sure to convert frequency of occurrence to yearly base.

One year past, calculate the cost and benefit of controls that have been in place.

Category	Cost per incident	Frequency of occurrence	Cost of control	Type of control
Programming errors	$1,000	2 per week	$2500	Training
Information theft(hacker)	$2,000	1 per quarter	$10,000	Firewall
Information theft(employee)	$5,000	1 per year	$10,000	Physical security
Viruses	$1,000	1 per year	$10,000	Anti-virus
Denial of service attacks	$3,500	1 per 6 month	$10,000	Firewall
Natural diaster	$100,000	1 per 20 years	$15,000	Insurance