Risk Management
Completion requirements
Read this page and watch the video to learn more about the purpose of risk management and the four stages of the risk management process. Before you move on, make sure you have a good understanding of the formulas, and that you are able to use the formulas on this page to calculate single loss expectancy (SLE), annual rate of occurrence (ARO), and annual loss expectancy (ALE).
Instruction
Tangible Assets
Tangible assets are those assets that have a physical presence. The risk analysis can identify a real value. These types of assets are valued based on the original or replacement cost.
These types of assets often depreciate to zero for accounting purposes. Common ways to calculate tangible assets would include:
- Original cost minus depreciation
- Actual market value based on market research
- Installation cost
- Impact on operations