FAIR Practice Exam 2025 – Comprehensive Test Prep Resource

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What is the appropriate level of abstraction for performing multiple analyses to determine the effectiveness of a new control?

At the highest level of abstraction-Loss Event Frequency

At the lowest level of abstraction - Resistance Strength

The appropriate level of abstraction for performing multiple analyses to determine the effectiveness of a new control should focus on detail that allows for a clear assessment of the control's impact and capability. Evaluating the new control at the lowest level of abstraction—Resistance Strength—provides specific insights into how well the control can mitigate risk at a granular level.

Resistance Strength directly relates to the capability of the control to prevent or mitigate loss events, thus providing a measurable indicator of effectiveness. Analyzing factors at this detailed level allows risk managers to assess vulnerabilities and the robustness of their defenses. This in-depth examination can lead to more informed decision-making regarding control adjustments, investments, and overall risk management strategies.

In contrast, higher levels of abstraction, such as Loss Event Frequency, may overlook critical details that are essential for understanding the control's specific performance. Therefore, evaluating at a granular level enables a comprehensive understanding of the control's direct effects, ensuring that analyses are meaningful and actionable.

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If no existing data exists, then one layer down from the highest level of abstraction

At the level which minimizes the scope of the analysis

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