CompTIA Updated SY0-701 Exam Questions and Answers by mabli

Compensating controls are alternative security measures that are implemented when the primary controls are not feasible, cost-effective, or sufficient to mitigate the risk. In this case, the organization used compensating controls to protect the legacy system from potential attacks by disabling unneeded services and placing a firewall in front of it. This reduced the attack surface and the likelihood of exploitation.

The correct answers are A. Likelihood and D. Impact.

A risk matrix commonly calculates or represents risk using likelihood and impact. Likelihood measures the probability that a threat or risk event will occur. Impact measures the severity of the consequences if the event occurs. Together, they help determine the overall risk rating, such as low, medium, high, or critical.

For example:

Risk = Likelihood × Impact

Why the other options are incorrect:

B. Quantitative

Quantitative describes a type of risk analysis that uses numerical or monetary values. It is not one of the two standard matrix factors.

C. SLE

Single Loss Expectancy is used in quantitative risk calculations. It estimates the cost of a single incident.

E. ALE

Annualized Loss Expectancy is used in quantitative risk analysis and is commonly calculated as SLE × ARO.

F. ARO

Annualized Rate of Occurrence estimates how often an event is expected to happen per year. It is also used in quantitative risk calculations.

Therefore, the two metrics used in a risk matrix are likelihood and impact.

Bug bounty programs invite vetted external researchers to report software vulnerabilities in exchange for rewards. According to Security+ SY0-701, two major benefits are:

(1) Reduction in the number of zero-day vulnerabilities (B) – Ethical hackers can discover unknown vulnerabilities before malicious attackers do. These vulnerabilities are often zero-days because they are unknown to vendors at the time of discovery. Bug bounty programs surface these issues early, helping organizations mitigate severe risks proactively.

(2) Quicker discovery of vulnerabilities (E) – A distributed network of global security researchers can identify vulnerabilities far faster than an internal team alone. This accelerates detection, increases coverage, and lowers attacker dwell time.

Option A (Transference of risk) is incorrect because bug bounties do not transfer risk—they help identify vulnerabilities. C (Security awareness) relates to internal training, not bug bounties. D (Reduced cost) is misleading; bug bounties can be expensive depending on payout structure. F (Patch management) does not directly improve through bug bounty programs.

Therefore, the correct benefits are B and E.

The correct answer is $10,000 because Annualized Loss Expectancy (ALE) represents the expected yearly financial loss from a specific risk. According to Security+ SY0-701 risk management principles, ALE is calculated using the formula:

ALE = Single Loss Expectancy (SLE) × Annualized Rate of Occurrence (ARO)

In this scenario, the Single Loss Expectancy (SLE) is clearly defined as $15,000, which represents the financial impact of a single security breach. The challenge lies in determining the Annualized Rate of Occurrence (ARO). The breach is expected to occur twice over a three-year period, which means the ARO is:

ARO = 2 ÷ 3 ≈ 0.67 occurrences per year

Using the ALE formula:

ALE = $15,000 × 0.67 ≈ $10,000

This calculation aligns with standard quantitative risk assessment techniques emphasized in the SY0-701 study guide. ALE allows organizations to compare the cost of potential losses against the cost of implementing security controls, helping leadership make informed, financially sound risk management decisions.

Option A, $7,500, would be correct only if the event occurred once every two years. Option C, $15,000, reflects the SLE but does not account for frequency. Option D, $30,000, incorrectly represents the total loss over three years rather than an annualized value.

The SY0-701 objectives highlight ALE as a critical metric for prioritizing risks, justifying security investments, and communicating risk in business terms to executives. By converting risk into an annual expected cost, ALE bridges the gap between technical security concerns and organizational financial planning.

In summary, when frequency is spread across multiple years, the loss must be annualized. Doing so correctly results in an ALE of $10,000, making option B the correct answer.