• Mercer Paints is a paint manufacturing company located in Alabama that uses a network to link its business operations. A security risk assessment that management requested identified a number of potential exposures. These exposures, their associated probabilities, and average losses are summarized in a table, which can be found in MyLab MIS. Use the table to answer the following questions:
• In addition to the potential exposures listed, identify at least three other potential threats to Mercer Paints, assign probabilities, and estimate a loss range.
• Use spreadsheet software and the risk assessment data to calculate the expected annual loss for each exposure.
• Present your findings in the form of a chart. Which control points have the greatest vulnerability? What recommendations would you make to Mercer Paints?

Chapter 8 Hands-on MIS

Improving Decision Making: Using Spreadsheet Software to Perform a Security Risk Assessment

Mercer Paints Risk Assessment

Exposure	Probability of Occurrence (%)	Average Loss ($)
Malware attack	60%	$75,000
Data loss	12%	$70,000
Embezzlement	3%	$30,000
User errors	95%	$25,000
Threats from hackers	95%	$90,000
Improper use by employees	5%	$5,000
Power failure	15%	$300,000