Darcy is an information security risk analyst for Roscommon
Agricultural Products. She is currently trying to decide whether
the company should purchase an upgraded fire suppression
system for their primary data center. The data center facility
has a replacement cost of $2 million.
After consulting with actuaries, data center managers, and fire
subject matter experts, Darcy determined that a typical fire
would likely require the replacement of all equipment inside the
building but not cause significant structural damage. Together,
they estimated that recovering from the fire would cost
$750,000. They also determined that the company can expect a
fire of this magnitude once every 50 years.
Based on the information in this scenario, what is the exposure
factor for the effect of a fire on the Roscommon Agricultural
Products data center?
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