Calculate the monetary value of the risk

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Question - The U.S. government regards a command and control center at a military installation in the Middle East to be critical to its ability to operate in the region. The experts estimate that the cumulative cost of a loss of the command and control center would be $500 million. Furthermore, they have identified a threat of a bomb to the facility and estimate that a successful attack would cause an 85 percent loss. The experts say that this type of attempted attack would occur once per week. The command and control center has several safeguards, such as physical barriers, perimeter alarm systems, military police patrols, and 3,500 additional soldiers on base protecting it. As a result, it is estimated that the controls are 99.99 percent effective. Calculate the monetary value of the risk of a command and control center bomb?

Reference no: EM133058112

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