Homeland Security Cost and Benefit Analysis

Homeland Security Cost and Benefit Analysis

Do a cost and benefit analysis for the following company.

Ebidding company has an ecommerce website that generate $500,000 per year. Calculate the annualized rate of occurrence (ARO) and annualized loss expectancy (ALE) for each risk:

Category Cost per incident Frequency of occurrence

Programming errors $1,000 2 per week

Information theft(hacker) $2,000 1 per quarter

Information theft(employee) $5,000 1 per year

Viruses $1,000 1 per year

Denial of service attacks $3,500 1 per 6 month

Natural diaster $100,000 1 per 20 years

Note: Make sure to convert frequency of occurrence to yearly base.

One-year past calculate the cost and benefit of controls that have been in place.

Please provide a clear explanation of your calculation.

Category Cost per incident Frequency of occurrence Cost of control Type of control

Programming errors $1,000 2 per week $2500 Training

Information theft(hacker) $2,000 1 per quarter $10,000 Firewall

Information theft(employee) $5,000 1 per year $10,000 Physical security

Viruses $1,000 1 per year $10,000 Anti-virus

Denial of service attacks $3,500 1 per 6 month $10,000 Firewall

Natural diaster $100,000 1 per 20 years $15,000 Insurance