Question
Practice Question: A risk has been identified resulting from a vulnerability in the system that manages the Patient Information Database. The estimated cost to restore
Practice Question: A risk has been identified resulting from a vulnerability in the system that manages the Patient Information Database. The estimated cost to restore the database if it is entirely lost or corrupted is assessed as $1M, and the economic damage due to patients and doctors moving to other hospitals is estimated to be an additional $1M. Based on published information on cyberattacks in the health care industry, the estimated number of successful attacks based on the exploitation of the vulnerability is four (4) per year, and each successful attack is estimated to cost the hospital 5% of the estimated total potential loss. Further, assume that a commercial product has been identified that will reduce the loss from a breach by a factor of ten (10) to 0.5% of the total. What is the maximum annual total cost for this product to achieve a positive return on the investment to procure it (i.e., a positive Control Value)?
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