richman is considering buying insurance for each smartphone.use the ALE to detrmine the usefulness of this safeguard.for example,they can purchase insurance for each device for $25.00 per year.The safeguard value is $25x 1,000 devices, or $25,000.it is estimated that if the insurance is purchased the ARO will decrease to 5.Should the company purchase the insurance?
ARO with control =5
ALE with control= (current ALE-ALE with control)
safeguard value(cost of control)=25,000
Realized savings= (savings with control-safe guard value)