What is the value of this safeguard to the company?

Kevin and David are carrying out a risk assessment and they need to perform a cost/benefit analysis on a specific countermeasure to determine if it is a good choice for the company. The potential loss to the company without the control is $200,000. The ALE with the control is $75,500. They figure that the annual cost of the safeguard is $55,400. What is the value of this safeguard to the company?

Kevin and David are carrying out a risk assessment and they need to perform a cost/benefit analysis on a specific countermeasure to determine if it is a good choice for the company. The potential loss to the company without the control is $200,000. The ALE with the control is $75,500. They figure that the annual cost of the safeguard is $55,400. What is the value of this safeguard to the company?

A.
$220,100

B.
Negative $69,100

C.
$69,100

D.
Negative $220,100

Explanation:
The real value of a countermeasure to a company is calculated by
subtracting the ALE after the countermeasure is implemented and the annual cost of
maintenance from the ALE before the measure was implemented.



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