What is the relationship between "Control Effectiveness" and risk reduction in FAIR?

The concept of "Control Effectiveness" in the FAIR (Factor Analysis of Information Risk) framework refers to how well security controls mitigate risk. When control effectiveness is high, it means that the implemented controls are significantly reducing the likelihood of harmful events occurring, as well as lessening the potential impact or magnitude of those events when they do occur.

Reducing the probability of loss events means that the controls are effectively preventing incidents, while reducing the magnitude of loss events means that when incidents do occur, they result in lesser impacts than they would without effective controls in place. This relationship is critical in robust risk management, as it emphasizes the dual role of controls in both mitigation and management of potential losses.

The alternative options do not accurately represent the relationship outlined in the FAIR framework when discussing control effectiveness. For instance, higher control effectiveness does not guarantee complete risk elimination; it may not always decrease mitigation costs, and it does not inherently increase the speed of risk analysis. Rather, its primary function is to lower the overall risk exposure by affecting both the probability and potential impact of loss events.