Use the following graph of the cost/benefit model for risk analysis to answer the next five questions.

-What does (4) represent?
A) Total cost
B) Loss area
C) Cost of controls
D) Level of assurance
E) Optimal point of reasonable assurance E

Question

Use the following graph of the cost/benefit model for risk analysis to answer the next five questions.
 
-What does (4) represent?
A) Total cost 
B) Loss area 
C) Cost of controls 
D) Level of assurance 
E) Optimal point of reasonable assurance E

Quizplus · Accepted Answer

The optimal point of reasonable assurance is where the cost of controls is justified by the reduction in potential losses. This point is represented by (4) on the graph.

Use the Following Graph of the Cost/benefit Model for Risk