Risk Assessment Exercises: Page 320: #3 Suppose XYZ Software Company has a new application development project with projected revenues of $1.2 million Using the following table, calculate the ARO and ALE (In cost- benefit analysis, the product of the annualized rate of occurrence and a single loss expectancy.) for each threat category the company faces for this project. The first one is done for you. ategory ost per inci S5,000 S75,000 Programmer mistakes Loss of intellectual property Software piracy Theft of information (Hacker) Theft of information (employee Web defacement Theft of equipment Viruses, worms, Trojan horses Denial-of-service attacks 1 per week 1 per year 52.0 $260,000 $500 $2,500 1 per week 1 per quarter $5,000 1 per 6 months S500 $5,000 $1,500 1 per montlh 1 per year 1 per week $2,500 1 per quarter 000 per 20 years 250,000 per 10 years 500,000 1 per 10 years S250,000 Flood ire ARO In cost-benefit analysis, the expected frequency of an attack, expressed on a per-year basis ALE In cost-benefit analysis, the product of the annualized rate of occurrence and a single loss expectancy