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A risk assessment was conducted on two assets (A1 and A2) from three threats (T1,...

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Accounting

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A risk assessment was conducted on two assets (A1 and A2) from three threats (T1, T2, and T3) with the results as shown in the table below. By investing in additional countermeasures (CMs), some risk can be reduced. Assume that the new CMs will have no impact on the likelihood of each threat and that the cost of money is 7%. Conduct an incremental B/C analysis to determine which threat-asset pair reduction would yield the best return on investment. Asset- Threat Pair Vulnerability (V1) New CMS ($) New CMS Effectiveness CMS Service Life (yrs) A1:T1 A1:T2 A1:T3 A2:T1 A2:12 A2:13 Worst Reasonable Consequences (C) ($-million) 9.2 14.5 5.2 9.6 4.8 4.0 0.85 0.29 0.95 0.96 0.28 0.57 Threat Likelihood (T) 0.00300 0.00065 0.06100 0.00038 0.00590 0.00260 $ 32.000 | $3,250 $49,200 $ 5,000 $3,580 $ 10,800 0.38 0.75 0.08 0.65 0.08 0.66 ow

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