Step 1: Calculate SLE (Single Loss Expectancy)
SLE represents the total cost for a single event of loss, in this case, a hard drive failure.
SLE formula:
SLE=AssetValue×ExposureFactor(EF)SLE = Asset Value \times Exposure Factor (EF)SLE=AssetValue×ExposureFactor(EF)
Given:
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Asset Value = Cost of a new hard drive = $300
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EF = 1 (100%), meaning the asset is fully lost in the failure
So:
SLE=300×1=300SLE = 300 \times 1 = 300SLE=300×1=300
Step 2: Calculate ARO (Annual Rate of Occurrence)
ARO represents how often the event (hard drive failure) happens in a year.
Given:
So:
ARO=13 (once every 3 years)=0.33ARO = \frac{1}{3} \text{ (once every 3 years)} = 0.33ARO=31 (once every 3 years)=0.33
Step 3: Calculate ALE (Annual Loss Expectancy)
ALE is the total expected loss in a year, which is the product of SLE and ARO.
ALE formula:
ALE=SLE×AROALE = SLE \times AROALE=SLE×ARO
Substitute the values:
ALE=300×0.33=99ALE = 300 \times 0.33 = 99ALE=300×0.33=99
Step 4: Calculate the cost of the recovery operation per year
Next, we calculate the cost of recovery per year.
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Time to restore OS and software: 10 hours
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Time to restore the database: 4 hours
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Total time: 10 + 4 = 14 hours
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Recovery person’s hourly wage: $10/hour
So, the recovery cost per failure is:
14×10=140 dollars14 \times 10 = 140 \text{ dollars}14×10=140 dollars
Step 5: Total annual cost (SLE + recovery cost)
Now, we add the SLE and annual recovery cost to get the total annual cost.
TotalAnnualCost=ALE+(Recoverycostperfailure×ARO)Total Annual Cost = ALE + (Recovery cost per failure \times ARO)TotalAnnualCost=ALE+(Recoverycostperfailure×ARO) TotalAnnualCost=99+(140×0.33)=99+46.2=145.2Total Annual Cost = 99 + (140 \times 0.33) = 99 + 46.2 = 145.2TotalAnnualCost=99+(140×0.33)=99+46.2=145.2
Closest Approximate Answer:
The closest approximate cost of this replacement and recovery operation per year is $146.
Answer: $146.