Neco 2022 Data Processing Question 33

An organisation faces three threats with the following likelihood (per year) and impact (in thousand Naira):\n\n- Threat A: likelihood 0.2, impact 500\n- Threat B: likelihood 0.1, impact 800\n- Threat C: likelihood 0.05, impact 1200\n\nThe initial total risk is the sum of \(likelihood \times impact\) for each threat.\n\nThree security controls are available:\n\nControl X (cost 40 000): reduces likelihood of A by 50 % and of B by 20 %.\nControl Y (cost 60 000): reduces impact of B by 30 % and of C by 25 %.\nControl Z (cost 70 000): reduces likelihood of C by 60 % and impact of A by 10 %.\n\nManagement requires the total risk to be at most 150 (thousand Naira) while minimising total cost.\n\nWhich combination of controls should be implemented? State the selected controls, the total cost (in Naira), and the resulting total risk (to one decimal place).