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JamJam International is evaluating measures in an attempt to mitigate risk. The following information is given. The company has determined that a particular, periodic
JamJam International is evaluating measures in an attempt to mitigate risk. The following information is given. The company has determined that a particular, periodic vulnerability exploit is costing $500,000 per incident (or SLE). They estimate that, given the threat and the existing vulnerability, such incidents have an 85% occurrence probability during the year based on past experience (use 0.85 as ARO). JamJam's Information Security officer is recommending several possible mitigation options. Mitigation Option A Mitigation Option B Mitigation Option C Mitigation Option D Estimated to cut the probability of incident occurring in half. Annual cost is $90,000. Estimated to reduce the existing likelihood by 30%. Cost of option is $80,000 per year for a 3-year period. After that the price is expected to increase. Estimated to reduce the existing likelihood by 20%. Purchase cost is $190,000 with an additional $5,000 license and maintenance cost in first and subsequent years until product reaches its end-of-life. Reduces likelihood from 85% to 50% within the first 6 months. Once tuned, further reduces the remaining likelihood by 5% over the next 6 months. Initial purchase cost is $85,000 with an additional $2,000 annual maintenance fee in first and subsequent years. Your Assignment 1. Calculate the following for each option. Clearly show all calculation progressions. a. Modified Annual Loss Expectancy, b. Savings c. Return on Security Investment (ROSI). d. NOTE: only calculate the cost of safeguard (ACS) for one year. No need to amortize in this problem. 2. Rank options based on ROSI. 3. Based on the ROSI, which option would you choose? Explain why. 4. Submit answers in a word or PDF document.
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