What four factors make up a loss scenario according to FAIR principles?

The correct answer outlines the four essential components that define a loss scenario within the FAIR (Factor Analysis of Information Risk) framework. These components are critical for assessing risk in a structured manner.

In this context, the 'Threat' refers to entities or circumstances that could exploit vulnerabilities to cause harm or loss to an asset. A clear understanding of threats helps in identifying potential risk sources.

Next is 'Effect,' which captures the potential outcome or consequences of a successful exploit on the asset. This includes financial losses, reputational damage, or any other impacts that the organization might face due to the event.

The 'Asset' is the resource that is subject to risk and typically holds value for the organization, such as data, systems, or infrastructure. Recognizing which assets are at risk is fundamental to prioritizing risk management efforts.

Finally, 'Method' refers to the approaches or tactics that a threat might employ to exploit the asset. Understanding the methods helps organizations to better prepare defenses and response strategies against potential attacks.

Together, these four components provide a comprehensive view of risk scenarios, enabling organizations to analyze their risk landscape effectively and develop appropriate risk management strategies. This structured approach supports the goal of minimizing loss and enhancing the organization's security posture.