Single loss expectancy: The expected monetary loss every time a risk occurs is called the Single Loss Expectancy. The Single Loss Expectancy (SLE), Exposure Factor (EF) and Asset Value (AV) are related by the formula: SLE = EF * AV Introducing this conceptual breakdown of Single Loss Expectancy into Exposure Factor and Asset Value allows us to adjust the two terms independently and is related to risk management and risk assessment. Asset Value may vary with market changes, inflation while Exposure Factor can be reduced by enabling preventive measures. Annualized loss expectancy: The product of the single loss expectancy (SLE) and the annual rate of occurrence (ARO) give annualized loss expectancy (ALE). It is mathematically expressed as: ALE = SLE * ARO The important feature of Annualized Loss Expectancy is that it can be used directly in a cost- benefit analysis.

Question

Case 1: As a consulting engineer you were asked to monitor a water supply project financed by an NGO and handled by local water users committee at Natore district. The project must be completed by the end of December 2020; otherwise the donor would stop the payment. When you visited the site at the middle of May 2020, you found that the project was not completed. The users committee requested to submit the completion report so that they could finish the work after some time and will be beneficial to 100 household of the project. Answer the following questions.Question: 3) Discuss different options for the engineer in reporting the project progress status, considering personal integrity.

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Question

Chapter 7, Problem 3E

Program Plan Intro

Single loss expectancy:

The expected monetary loss every time a risk occurs is called the Single Loss Expectancy.

The Single Loss Expectancy (SLE), Exposure Factor (EF) and Asset Value (AV) are related by the formula:

SLE = EF * AV

Introducing this conceptual breakdown of Single Loss Expectancy into Exposure Factor and Asset Value allows us to adjust the two terms independently and is related to risk management and risk assessment.

Asset Value may vary with market changes, inflation while Exposure Factor can be reduced by enabling preventive measures.

Annualized loss expectancy:

The product of the single loss expectancy (SLE) and the annual rate of occurrence (ARO) give annualized loss expectancy (ALE).

It is mathematically expressed as:

ALE = SLE * ARO

The important feature of Annualized Loss Expectancy is that it can be used directly in a cost- benefit analysis.

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