A company decided to reduce the cost of its annual cyber insurance policy by removing the coverage for ransomware attacks. Which of the following analysis elements did the company most likely use in making this decision?
MTTR (Mean Time to Repair): This measures the average time it takes to repair a system or component after a failure. It is used to assess how quickly an organization can respond to and fix issues.
RTO (Recovery Time Objective): This is the maximum acceptable amount of time that a system or application can be down after a failure or disaster. It defines the target time for recovery.
ARO (Annualized Rate of Occurrence): This estimates the frequency with which a specific risk or event is expected to occur in a year. It helps in assessing the likelihood of risks.
MTBF (Mean Time Between Failures): This measures the average time between failures of a system or component. It is used to predict the reliability and performance of systems over time.
In the context of the company deciding to remove ransomware coverage to reduce costs, they likely assessed the ARO (Annualized Rate of Occurrence) to determine how often ransomware attacks are expected to occur and decided the risk was low enough to justify the cost savings.
In this scenario, option C. ARO (Annualized Rate of Occurrence) is the correct answer because it assesses the frequency of ransomware attacks. The company likely used ARO to evaluate the likelihood of such incidents occurring and decided that the probability did not justify the cost of insurance coverage for ransomware, leading to the decision to reduce the policy cost.
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