AV (Asset value) = $300 + (14 * $10) = $440 - the cost of a hard drive plus the work of a recovery person, i.e.how much would it take to replace 1 asset? 10 hours for resorting the OS and soft + 4 hours for DB restore multiplies by hourly rate of the recovery person. SLE (Single Loss Expectancy) = AV * EF (Exposure Factor) = $440 * 1 = $440 ARO (Annual rate of occurrence) = 1/3 (every three years, meaning the probability of occurring during 1 years is 1/3) ALE (Annual Loss Expectancy) = SLE * ARO = 0.33 * $440 = $145.2 ~~$145

Or very much simplified, $10 per hour times 14 hours ($140) + $300 = $440. Expected life of drive 3 years, so 440/3 years (Average the cost over the span of the expected lifetime) ($440/3) $146.67

Risk Calculation Formulas Asset Value (AV): The value you have determined an asset to be worth Exposure Factor (EF): The estimated percentage of damage or impact that a realized threat would have on the asset Single Loss Expectancy (SLE): The projected loss of a single event on an asset Annual Rate if Occurrence (ARO): The estimated number of times over a period the threat is likely to occur Annualized Loss Expectancy (ALE): The projected loss to the asset based on an annual estimate Appendix B p.3382/3366